Nikkei goes up, leading Asian market surge
On Monday, Japanese stocks reported the greatest daily revenue for up to four months, thus erasing last week’s losses, caused by Brexit concerns.
Japanese Nikkei Stock Average closed +4% amid soaring hopes for a new fiscal stimulus package, which would revive the world’s number three economy. The move appeared to be the best one-day revenue for Japanese shares since March 2, when the benchmark dared to rise 4.1%.
Elsewhere in the region, Australian S&P/ASX 200 closed +2%, Korean Kospi soared 1.3%, while in Hong Kong the Hang Seng Index grew 1.6%. In China the Shanghai Composite Index ascended 0.2%.
Stocks in Japan surged after on Sunday, Prime Minister Shinzo Abe’s ruling coalition, headed by his Liberal Democratic Party, increased its control of the upper house. By the way, the coalition’s firmer grip simply means that policy makers have more freedom when it comes to approving the greatest fiscal stimulus package this autumn.
On Monday, Abe told that on Tuesday, his cabinet would get down to drawing up a stimulus package, though he didn’t specify the size.
The prospect of stimulus policies encouraged market participants, who were already cheered up by Friday’s stronger-than-expected American jobs data.