Japanese
stocks rose after Prime Minister Shinzo Abe postponed a planned
sales-tax increase, called a snap election and ordered his ministers to
start preparing a stimulus package.
The
Topix index climbed 0.6 percent to 1,402.67 as of 9:01 a.m. in Tokyo
after gaining 2.1 percent yesterday. The Nikkei 225 Stock Average
advanced 0.4 percent to 17,415.72 today. The yen slipped 0.1 percent to
116.93 per dollar after weakening 0.2 percent yesterday. Abe will delay
raising the levy by 18 months, he said at a press conference yesterday.
Parliament will be dissolved Nov. 21. The vote will probably be Dec. 14,
said people with knowledge of the ruling partys strategy.
The
Topix has almost doubled since November 2012, with investors in
Japanese stocks about $1 trillion richer, as policies of Abe and the
Bank of Japan weakened the yen and spurred inflation. Through yesterday,
the measure was up 18 percent from an Oct. 17 low after the central
bank added to quantitative easing, the $1.1 trillion pension fund
pledged to buy more shares and amid speculation Abe wouldnt go through
with the tax increase.
Japanese
stocks tend to rise after elections are called. In 11 elections since
1980, the Topix index has posted average total returns of 3.1 percent
between the dissolution of parliament and the vote, according to data
compiled by Bloomberg and Daiwa Securities Group Inc.
The BOJ ends a two-day meeting and issues a policy statement today.
Source : Bloomberg
0 komentar :
Post a Comment