Stocks rose in Europe and most of Asia on Monday, with the Tokyo benchmark rising 2.6% after ruling Liberal Democrats won a larger-than-expected majority in the election Sunday.
The gains followed other milestones on Wall Street, where all three major indexes set records.
The German DAX rose 0.6% to 15,774.76 and in Paris, the CAC 40 gained 0.5% to 6,863.04. Britain’s FTSE 100 gained 0.4% to 7,268.63. Futures contracts for Dow Industrials and the S&P 500 were up 0.2%.
On Friday, the S&P 500 rose 0.2%; the Dow Jones Industrial Average gained 0.3% and the Nasdaq closed up 0.3%.
Japanese Prime Minister Fumio Kishida’s coalition retained a comfortable majority in Sunday’s parliamentary elections despite losing some seats as his weeks-old government grapples with a coronavirus-hit economy and security concerns regional.
“It removes a key political surplus that has weighed on market sentiment. . . and leads to risk movements in the Japanese market, ”IG’s Jun Rong Yeap said in a comment.
Kishida is expected to develop a package of government spending and other measures to stimulate growth. He moved away from previous comments suggesting he was in favor of an increase in the capital gains tax, a move that would largely tax the wealthy. Suggesting that this could be a way to tackle growing inequality in Japan, the stock price weakened right after he took office.
Shares have since rebounded amid signs that the Kishida administration is likely to continue the market support policies of its predecessors Shinzo Abe and Yoshihide Suga.
Tokyo’s Nikkei 225 index jumped 754 points to 29,647.08, while Seoul’s Kospi gained 0.3% to 2,978.94. In Sydney, the S & P / ASX 200 gained 0.6% to 7,370.80. The Shanghai Composite Index edged down 0.1% to 3,544.48.
The Hong Kong Hang Seng fell 0.9% to 25,154.32, as investor worries about financial risks to real estate developers added to concerns about the economic outlook.
Wall Street posted its best month in nearly a year in October, as investors balanced encouraging corporate earnings growth with concerns about rising inflation and supply chain disruptions.
A wide range of companies, most recently Apple and Amazon, have reported problems due to rising costs or supply chain issues.
Outside of earnings, investors anxiously await this week’s Federal Reserve meeting as the central bank moves closer to cutting bond purchases that have helped keep interest rates low.
Benchmark US crude oil fell 27 cents to $ 83.30 a barrel in electronic trading on the New York Mercantile Exchange. It fell 24 cents to $ 83.57 a barrel on Friday.
Brent crude, the basis of international pricing, fell 4 cents to $ 83.68 a barrel.
The US dollar rose to 114.41 Japanese yen from 114.07 yen on Friday. The euro strengthened to $ 1.1571 from $ 1.1566.
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