Tokyo Stocks Rise After Election Landslide by LDP

Tokyo stocks soared Monday, briefly up over 4 percent, on strong U.S. jobs data and growing hopes of the government implementing fiscal stimulus measures following a landslide victory by Japan’s ruling party in the upper house election.

The 225-issue Nikkei Stock Average ended up 601.84 points, or 3.98 percent, from Friday at 15,708.82. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 45.91 points, or 3.79 percent, higher at 1,255.79.

Every industry category on the main section gained ground, led by miscellaneous product, iron and steel, and securities issues.

Tokyo stocks staged a sharp rally after U.S. stocks rose Friday on better-than-expected U.S. jobs data following a surprisingly sluggish reading for May. The nonfarm payroll report said the U.S. economy added 287,000 jobs in June.

Shares extended gains in the afternoon as the yen weakened against the U.S. dollar. The dollar rose to the lower 101 yen range from the upper 100 yen zone.

“The strong U.S. data eased concerns about a slowdown in the country’s labor market and economy,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co. “It proves that the data for May was an anomaly.”

via SOURCE

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