Japan's Nikkei rises as investors digest election results
As of 0023 GMT, the Nikkei was up 1.1% at 40,241.61. The broader Topix rose 0.78% to 2,856.49.
Japan's ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power even as he vowed to remain party leader.
The election was closely monitored as Ishiba's party also lost control of the more powerful lower house in elections last year and his Liberal Democratic Party was facing calls from opposition parties pledging to cut taxes.
'Investors bought stocks as the election outcome was in line with their expectations,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
'And they thought the election outcome would not have much impact on Japan's policy framework immediately, as Ishiba said he has no plans to expand his coalition.'
Shares of technology investor SoftBank Group jumped 4%, making them the largest contributor to the Nikkei's gains. Chip-related Advantest and Tokyo Electron rose 2.24% and 0.95%, respectively.
Heavy machinery maker Mitsubishi Heavy Industries jumped 5.4% to become the top percentage gainer in the Nikkei.
Medical equipment maker Olympus fell 2%, becoming the biggest drag in the Nikkei.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Nikkei ends at record high as yen weakens
TOKYO: Japan's Nikkei closed at an all-time high on Friday, as the yen weakened and data showed the nation's economy was surprisingly resilient. The Nikkei 225 Index accelerated gains in the afternoon session, surging 1.7% to end at a record peak of 43,378.31. It touched an intraday record high of 43,451.46 earlier in the week. The broader Topix jumped 1.6% to 3,107.68, also a record closing level. The overnight drop in yen provided support to exporters' shares, while data released on Friday showed Japan's economy expanded at an annualised rate of 1% in the April-June quarter, beating forecasts. Analysts expect the full impact of US tariffs on growth to emerge later. Rising US Treasury yields and comments from US Treasury Secretary Scott Bessent on Thursday that the Bank of Japan will likely be raising interest rates were factors behind a jump in financial shares, Nomura Securities strategist Wataru Akiyama said. 'Expectations for improved performance due to rising domestic interest rates are acting as a tailwind, leading to relatively large increases in bank and insurance company shares today,' he said. Banks were the biggest gainers in the Topix, with a sub-index of lenders climbing 4.7% to its highest level since May 2006. Shares of Mitsubishi UFJ Financial Group rose 6%, marking an eighth consecutive session of gains and hitting a record high.
Business Recorder
14 hours ago
- Business Recorder
Toronto stocks subdued as investors await pivotal US-Russia meet
Canada's main stock index was flat on Friday as investors awaited a high-stakes meeting between Donald Trump and Russian leader Vladimir Putin on a potential path to ending the war in Ukraine. The Toronto Stock Exchange's S&P/TSX composite index was up 0.03% at 27,924.45 points. Among TSX sub-indexes, healthcare led weekly gains after a 3.7% rise on the day, boosted by a 37% weekly jump in Bausch Health Companies, its biggest rise since May 2023. Materials was the biggest drag, down 0.5%, as gold prices traded with caution ahead of the Trump-Putin talks. The stage was set for the U.S.-Russia summit in Alaska, scheduled for 11 a.m. Alaska time (1900 GMT), to discuss a ceasefire in Ukraine that Washington views as a potential path to ending Europe's deadliest war since World War Two. Trump said a second summit involving Ukrainian President Volodymyr Zelenskiy could follow if the talks go well. 'Short-term investors are hoping at least the meeting brings some kind of ceasefire or at least have continuous talks aswe're moving towards the end of the summer,' said Michael Constantino, CEO at Webull Canada. TSX's moves also mimicked Wall Street's benchmark S&P 500 index, which was largely flat. However, the blue-chip The Dow Jones Industrial Average took the spotlight as it hit an all-time intraday high. Despite the tepid moves, ongoing expectations for U.S. Federal Reserve easing have kept Canadian equities on track to finish the week higher. The TSX is up 0.5% so far this week. Data on Friday showed Canadian factory sales grew 0.3% in June from May, led by petroleum, coal and food products, while wholesale trade rose 0.7% on gains in food, beverage and tobacco. South of the border, retail sales rose by an expected 0.5% in July, but a spike in import prices raised concerns that U.S. tariffs could fuel inflation in the months ahead.
Business Recorder
16 hours ago
- Business Recorder
Wheat up 2-4 cents, corn up 3-5 cents, soy up 7-9 cents
CHICAGO: The following are U.S. expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Friday. Wheat - Up 2 to 4 cents per bushel Wheat futures advanced overnight along with CBOT corn and soybeans. Traders were watching U.S. President Donald Trump's meeting with Russian President Vladimir Putin in Alaska to discuss a ceasefire deal for Ukraine. Russia and Ukraine are major grain exporters. CBOT September soft red winter wheat was last up 3-1/4 cents at $5.06-3/4 per bushel. K.C. September hard red winter wheat was last up 3-1/2 cents at $5.07-3/4 per bushel, and Minneapolis September wheat was last up 1/2 cent at $5.72-1/2 a bushel. Corn - Up 3 to 5 cents per bushel Corn futures crept higher overnight, with the December contract moving back above $4 per bushel, amid technical buying and short covering, analysts said. The market dropped to contract lows on Tuesday after the U.S. Department of Agriculture predicted the U.S. harvest would be a record and above analysts' expectations. Dry weather threatens to stress some crops heading into the end of August, Commodity Weather Group said. Expectations for a large Brazilian harvest hung over the market. CBOT December corn was last up 3-3/4 cents at $4.01 per bushel. Wheat up 1-2 cents, corn up 1-2, soybeans up 10-12 Soybeans - Up 7 to 9 cents per bushel Soybean futures traded higher, extending this week's advance. Lower-than-expected U.S. production and carryover estimates, issued by the USDA on Tuesday, have supported gains. Next week, traders will monitor results from an annual Pro Farmer crop tour that scouts corn and soy fields across the U.S. Midwest. A National Oilseed Processors Association report due later on Friday is expected to show the U.S. July soybean crush increased slightly after a dip in the processing pace in June, analysts said. CBOT November soybeans were last up 7-3/4 cents at $10.36-1/4 per bushel. On Thursday, the contract reached its highest level since July 3.
