Tokyo stocks edge up as PM Ishiba vows to stay on after election

The Mainichi

3 days ago

TOKYO (Kyodo) -- Tokyo stocks edged up Tuesday morning as Japanese Prime Minister Shigeru Ishiba's vow to remain in office despite the ruling coalition's major setback in a national election helped ease concern about political uncertainty.
The 225-issue Nikkei Stock Average rose 73.70 points, or 0.19 percent, from Friday to 39,892.81. The broader Topix index was up 3.41 points, or 0.12 percent, at 2,837.89.
Japanese financial markets were closed Monday for a national holiday.
The U.S. dollar moved little around the mid-147 yen level in Tokyo, with investors adopting a wait-and-see stance as Ishiba's ability to steer the government remains unclear after the ruling coalition failed to retain its majority in the House of Councillors election, dealers said.
At noon, the dollar fetched 147.46-47 yen compared with 147.30-40 yen in New York at 5 p.m. Monday.
The euro was quoted at $1.1690-1692 and 172.38-42 yen against $1.1693-1703 and 172.28-38 yen in New York late Monday afternoon.
Stocks advanced as investors were relieved after Sunday's upper house election outcome was largely within expectations and Ishiba said Monday he will stay on, averting a political upheaval at least for the time being, market analysts said.
"Some investors had expected the coalition to lose many more seats," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
But the market remained cautious as the election result left the ruling bloc without control of both chambers of parliament. The coalition failed to secure a majority in last year's election for the more powerful House of Representatives.
"The market is keeping close tabs on whether the ruling coalition will explore a grand coalition with an opposition party" and consider a reduction in the consumption tax as demanded by opposition parties, which would worsen Japan's fiscal health, Ichikawa said.