Japan’s LDP party, led by Shinzo Abe, has won a landslide victory and returned to power after a three-year gap, now getting the chance to use its power to influence the Bank of Japan into more aggressive monetary policy and double the central bank’s inflation goal to 2%. The LDP has won 294 seats and its coalition partner New Komeito 31 in the 480-member House of representatives. That has taken them over 320, the two-thirds majority that allows them to enact bills in a re-vote if the upper house rejects them. Consequently, USD/JPY hit its highest level since April 2011 and Nikkei 225 also opened higher, trading around its 8-month high. Tokyo Electric Power shares trades higher on the day by 32.89% as the LDP calls for a pro-nuclear energy policy. Focus has now been shifted to Japan’s December 20th monetary policy meeting, where the Bank of Japan is likely to expand its asset purchase program.
Elsewhere in China, the Shanghai Composite continues to rally following last Friday’s 4.32% surge as Chinese leaders pledged at the central economic work conference to maintain a prudent monetary policy and a pro-active fiscal policy next year. Basic material sector is leading the way up on the back of policy makers decided to actively and steadily push forward urbanization next year.
Going forward, the final reading of Japanese machine tool order is due to be released at 0600GMT/0000CST.
As of 0245 GMT:
ASX200 (-0.15 %), Nikkei 225 (+1.61%), Shanghai Comp. (+0.45%), Hang Seng (-0.10%), KOSPI (-0.14%)
Print 02:45, 17 Dec 2012 - Asian News - Source: Newswires
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