Tokyo boosted by prospect of new Japanese prime minister

Tokyo boosted by prospect of new Japanese prime minister
Tokyo boosted by prospect of new Japanese prime minister

The flagship Nikkei index, which had already jumped more than 2% on Friday, again gained 1.83% to 29,659.89 points on Monday, a threshold it had not reached at the close since April 19.

The Tokyo Stock Exchange experienced its sixth straight session on Monday, encouraged by the race to succeed Japanese Prime Minister Yoshihide Suga, with the Nikkei closing at its highest for five months and the Topix for 31 years.

The flagship Nikkei index, which had already jumped more than 2% on Friday, again gained 1.83% to 29,659.89 points on Monday, a threshold it had not reached at the close since April 19.

And the extended Topix index has advanced 1.28% to 2,041.22 points, the highest since August 1990. Friday it had already reached a level not seen since 1991.

The unpopular Mr. Suga’s announcement on Friday that he would not seek re-election as head of the Liberal Democratic Party (PLD) on September 29 paves the way for other contenders, such as the ambitious minister of the Taro Kono Administrative Reform or the moderate Fumio Kishida.

“The renunciation of Mr. Suga to stand for the head of the LDP reduces the chances that the party will be defeated in the next legislative elections (in the fall, editor’s note), and this supports the market,” noted Shoji Hirakawa of Tokai Tokyo Research Institute, cited by Bloomberg.

The Tokyo market is betting in particular, whatever the name of the future Prime Minister, on a more effective management of the health crisis in Japan than under Mr. Suga and on a new economic recovery plan.

In Hong Kong, the Hang Seng index rose nearly 1% at the end of the session, and Shanghai and Shenzhen were also up vigorously.

On the side of values

FEATURED TECH: all sectors of activity on the Nikkei index closed in the green, with technology stocks in particular showing strong growth.

The Nasdaq index in New York hit a new all-time high on Friday. The disappointing figures for the US labor market in August are likely to push the US Federal Reserve (Fed) to extend its massive support for the US economy with its asset buybacks, which benefits the tech sector in particular. .

Some Japanese stocks in the semiconductor industry stood out on Monday: Tokyo Electron took 2.42% to 50,180 yen and Screen Holdings 3.48% to 10,110 yen.

On the currency and oil side

The yen retreated slightly against the dollar, which had weakened markedly on Friday after the US employment figures. Around 6:45 a.m. GMT a dollar was trading for 109.80 yen against 109.71 yen on Friday at 9:00 p.m. GMT.

The euro was worth 130.37 yen, against 130.34 yen at the end of last week, and the European currency fell a little against the greenback, at the rate of one euro for 1.1873 dollars against 1.1880 dollars on Friday at 9:00 p.m. GMT.

The oil market was clearly in the red, as on Friday after the US employment figures. After 06:30 GMT the price of a barrel of US WTI gave up 1.2% to 68.46 dollars and that of a barrel of Brent from the North Sea dropped 1.18% to 71.75 dollars.

 
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