TOPSHOT – Officials watch as people cast their votes during the general election at a polling station set up at a local school in Tokyo on October 27, 2024. Japan voted on Oct. 27 for a new Prime Minister, Shigeru Ishiba, and with him the toughest election in years. The juggernaut Liberal Democratic Party faces its worst result since 2009. (Photo by Richard A. Brooks/AFP) (Photo by Richard A. Brooks/AFP via Getty Images)
Richard A. Brooks | Afp | Good pictures
Japan’s benchmark Nikkei 225 and its Topix index climbed on Monday, supported by a weaker yen amid political uncertainty as the ruling LDP lost its parliamentary majority.
The Nikkei rose 1.82% to close at 38,605.53, while Asia’s leading gainers were the Topix, which advanced 1.51% to 2,657.78. The yen fell 0.64% to 153.28 on Monday.
The LDP and its coalition partner Komeito won 215 of the 465 seats, while the opposition Constitutional Democratic Party and People’s Democratic Party made significant gains in the election.
Some analysts said this political uncertainty could prevent the Bank of Japan from raising rates.
While political uncertainty and instability could delay a rate hike, the BOJ cannot ignore the continued weakness in the yen, Bank of America chief Japan economist Izumi Devalier said.
“I don’t think the BOJ will be on hold for the foreseeable future. Obviously, you have to watch the market develop, but we could still be on the path to a hike even in January or December. That’s where the yen is going,” she said.
of South Korea Cosby Gained 1.13% to 2,612.43, while small-cap COST was up 1.8% to end at 740.48 and hit a six-week low.
of Australia S&P/ASX 200 It rose 0.12% to close at 8,221.5.
Hong Kong’s Hang Seng index gained 0.18% in its closing hour, while mainland China’s CSI 300 traded 0.2% higher at 3,964.16, after China reported its worst industrial profit numbers since the pandemic. Industrial profits in China fell 27.1% year-on-year in September.
