Asian shares rose, 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
Stock market today: Asian shares rise and the yen dips after Japan’s ruling party loses majorityBy YURI KAGEYAMAAP Business WriterThe Associated PressTOKYO
TOKYO (AP) — Asian shares rose 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 U.S. 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% in Tokyo trading. Nintendo Co. gained 2.6%, while Sony Corp. rose nearly 2.0%.
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% in morning trading to 38,527.52. Australia’s S&P/ASX 200 gained nearly 0.1% to 8,217.80. South Korea’s Kospi edged up 0.6% to 2,598.73. Hong Kong’s Hang Seng added 0.1% to 20,614.74, while the Shanghai Composite rose 0.3% to 3,310.63.
On Wall Street, U.S. 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% earlier in the day. The Dow Jones Industrial Average fell 0.6% and also posted its first weekly loss after six straight gains. The Nasdaq composite rose 0.6%.
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. Most of the results have beat analysts’ forecasts. Companies from around the world are scheduled to report earnings in coming weeks.
Treasury yields ended last week broadly higher. The yield on the 10-year Treasury rose to 4.24% Friday from 4.21% late Thursday.
Yields have generally climbed following reports showing the U.S. economy remains stronger than expected. Wall Street will have more updates next week on consumer confidence, jobs and inflation.
The Fed raised its benchmark interest rate to its highest level in two decades in an effort to tame inflation back to 2%, without sinking the economy into a recession.
A key report on U.S. consumer spending is expected later this week, called the PCE. Analysts expect it to show that the rate of inflation has eased to 2%. The central bank started cutting interest rates in September and economists expect another cut at its meeting in November.
Russia’s central bank on Friday raised its key interest rate by two percentage points to a record-high 21%. Moscow is trying to combat growing inflation sparked by military spending after its invasion of Ukraine.
In energy trading, benchmark U.S. crude fell $3.19 to $68.59 a barrel. Brent crude, the international standard, fell $3.25 to $72.80 a barrel.
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AP Business Writers Damian J. Troise and Alex Veiga contributed to this report.
Yuri Kageyama is on X: https://x.com/yurikageyama
