Sydney — Japanese shares jumped on a weaker yen on Monday as an election win for Shinzo Abe’s ruling bloc gave a green light for more super-easy policy stimulus, while the euro eased as Spain’s constitutional crisis aggravated the concern about political unity in the region. The dollar was the major beneficiary as President Donald Trump and Republicans took a small step toward tax cuts, boosting Wall Street stocks and lifting bond yields. Japan’s Nikkei raced up 1% to its highest since 1996 after Prime Minister Abe looked to have easily won in national elections over the weekend. Investors assumed the victory would allow the Bank of Japan (BoJ) to continue with massive monetary easing that depresses bond yields and the yen, even as the US Federal Reserve seems determined to increase rates again in December. "This should extend the lifespan of ‘Abenomics’, including the BoJ’s mega stimulus", wrote analysts at the Blackrock Investment Institute. "We see the outcome as a mild positive ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.