Japanese PM Abe Wins in a Landslide and the Nikkei Soars
Asian markets rung in the new week on a high note as they were bolstered by the landslide win for Japan’s Prime Minister Shinzo Abe. This win helped investors to shrug off a stronger than expected non-farm payroll (NFP) report on Friday which could push the US Federal Reserve (Fed) closer to hiking rates again.
The Japanese Nikkei 225 leaped four percent and the broader Topix also rose over four percent on the day. Both indices saw solid gains despite a stronger yen. By 0930 HK time the yen was trading at 100.68 against the US Dollar.
In Australia, the ASX 200 was up nearly 1.75 as the heavily weighted financial sub-index rose 2.15 percent. There was a rally with the country’s major banks as shares of ANZ rose over three percent. The Aussie Dollar was also higher. Shares in Hong Kong also joined the regional rally today as well as stocks in mainland China. In South Korea, the Kospi Composite rose over one percent on the day.
Shinzo Abe Cruises to a Victory
On Sunday, Japan’s current prime minister, Shinzo Abe saw his ruling coalition win in a landslide. This will make it easier for him to push through his economic agenda called Abenomics.
Also on Sunday, Australia Prime Minister Malcolm Turnbull declared that his ruling coalition won the very tight and close election. The vote counting continued for a week well after the election.
Thanks to the resolution of this election crisis, the Australian Dollar is finding some support after fall most of last week against its major currency counterparts.
On Friday, the US released its NFP showing that the world’s largest economy added 287,000 new jobs versus the expected 175,000. The unemployment rate edged higher from 4.8 to 4.9 percent.