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Asian Shares Surge Amid Weaker Yen

Japan’s ruling party lost the majority, causing yen weakness that boosts exports; Asian stocks climbed led by Tokyo’s gains; On Wall St, stocks finished the week on a mixed note

Asian Shares Surge Amid Weaker Yen

Asian Shares Surge Amid Weaker Yen
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29 Oct 2024 1:53 PM IST

The Yen weakened amid political upheaval, benefiting exporters like Toyota and Nintendo. Analysts say the ruling party’s election losses were anticipated, reducing any shock to stock market

Tokyo: Asian shares rose on Monday as the yen dipped in the midst of political uncertainty after Japan’s ruling party lost its majority in Parliament’s lower house in weekend elections.In currency trading, the US dollar rose to 153.76 Japanese yen from 152.24 yen. It was trading at 140-yen levels last month. The euro cost $1.0796, down form $1.0803.

The weak yen is a boon for Japan’s giant exporters like Toyota Motor Corp., whose stock gained 3.7 per cent in Tokyo trading. Nintendo Co. gained 2.6 per cent, while Sony Corp. rose nearly 2.0 per cent. Japan’s ruling Liberal Democratic Party is still the top party, but several members failed to win reelection in Sunday’s vote after a scandal involving unreported campaign funding. All told, the ruling coalition with junior partner Komeito secured 215 seats, down sharply from the majority of 279 it previously held, according to Japanese media. A change of government is not expected but the LDP may need a third coalition partner. Tokyo stocks rose. Analysts say the ruling party defeat had been greatly expected and factored into markets from before.

Japan’s benchmark Nikkei 225 surged 1.6 per cent in morning trading to 38,527.52. Australia’s S and P/ASX 200 gained nearly 0.1 per cent to 8,217.80. South Korea’s Kospi edged up 0.6 per cent to 2,598.73. Hong Kong’s Hang Seng added 0.1 per cent to 20,614.74, while the Shanghai Composite rose 0.3 per cent to 3,310.63. On Wall Street, US stock indexes finished last week, drifting to a mixed finish, giving the market its first losing week since early September. The S&P 500 closed little changed after having been up 0.9 per cent earlier in the day.

The Dow Jones Industrial Average fell 0.6 per cent and also posted its first weekly loss after six straight gains. The Nasdaq composite rose 0.6 per cent. Company earnings reports, which have been mostly solid, continue to be a key focus for investors. More than a third of the companies in the S&P 500 index have reported their latest quarterly financial results.

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