Asian shares rose Monday, despite the rollercoaster ride that closed Wall Street last week, as traders awaited cues from the U.S. central bank expected later in the week.
Japan’s ruling Liberal Democratic Party was set to pick a new leader, who will by definition become the prime minister because of the party’s control over the more powerful lower house of Parliament. Favored to win is veteran ruling party politician, Yoshihide Suga, who will continue Shinzo Abe’s “Abenomics” policies of easy lending and deregulation.
“That decision should not be market moving as we fully expect a steady hand to remain on the tiller of Abenomics. Mr. Suga has signalled that no further rises in sales tax are on the horizon, but all else should stay the same,” said Jeffrey Halley, senior market analyst at Oanda.
“Of more interest will be if Mr. Suga signals that a new election will be held to mandate his new government,” Halley said.
Japan’s Nikkei 225 NIK, +0.68% gained 0.7%. Hong Kong’s Hang Seng HSI, +0.76% gained nearly 1%, while the Shanghai Composite SHCOMP, +0.56% rose 0.6%. Australia’s S&P/ASX 200 XJO, +0.57% added 0.6% while South Korea’s Kospi 180721, +1.10% jumped 1%. Stocks were about flat in Singapore STI, -0.00% , but rose in Taiwan Y9999, +0.74% and Indonesia JAKIDX, +2.40% .
SoftBank 9984, +9.42%