P.M. BRIEFING : Market Climbs on Uno Resignation
Investors applauded Prime Minister Sosuke Uno’s decision to resign today, as Japanese stocks rose after a widely expected election defeat for the Liberal Democratic Party.
The key 225-share Nikkei index advanced 193.90 points or 0.57% to close at 34,093.33. It rose 234.56 Friday.
“The prospect of renewal in the party is a good sign,” said Tadashi Murakami, trader for Merrill Lynch Japan.
The stock market’s rally was capped, however, by concern over what comes next and, specifically, how the ruling Liberal Democrats will approach crucial lower house elections expected sometime in the autumn.
In currency markets, the dollar finished lower after an early spurt higher against the yen as news of Japan’s ruling LDP electoral defeat emerged. The dollar was worth 141.95 yen and 1.9065 West German marks at the close of trade against 142.23 and 1.9135 in New York on Friday.