Nikkei Surges post election

Tokyo’s benchmark stock index extended a record winning streak on Monday as Japanese Prime Minister Shinzo Abe’s victory in a snap election pushed the yen down and boosted exporters.

The Nikkei 225, which on Friday posted a 14th straight day of gains to match a record set in 1961, added 1.15 percent, or 246.51 points, to sit at 21,704.15 in early trade.

The broader Topix index was up 0.96 percent, or 16.70 points, at 1,747.34.

Abe — who came into power in late 2012 on a ticket to reignite the lumbering economy — is now on course to become the country’s longest-serving premier.

“It’s a relief for foreign investors who had bought Japanese stocks aggressively before the election on a bet that Abenomics will continue,” said Masayuki Kubota, chief strategist at Rakuten Securities, referring to Abe’s flagship growth policy.

The greenback strengthened to 113.91 yen against 113.51 yen in New York Friday.

A cheaper yen is a positive for Japanese exporters as it boosts their profitability, spurring demand for their shares.

“Abe policies should remain accommodative and point to a weaker yen over time,” said Stephen Innes, who heads Asia-Pacific trading at forex firm OANDA.

A cheaper yen boosted carmakers, with Nissan up 1.25 percent at 1,092.5 yen and Honda rising 0.99 percent to 3,462 yen.

Panasonic rose 1.67 percent to 1,664.5 yen and Canon climbed 0.42 percent to 4,047 yen.

Major bank Mitsubishi UFJ Financial rose 1.42 percent to 738.2 yen.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes