Lates News

On Monday, the Japanese stock market soared as the yen weakened and Japanese bonds held steady. This was due to Prime Minister Yoshihide Suga announcing his resignation, leading to speculation in the market that his successor will increase government spending. The Nikkei 225 index rose 1.7% to 43,740.15 points, while the Topix index of all First Section issues on the Tokyo Stock Exchange increased by 1%, reaching a historic high. The yen fell by 0.7% against the US dollar to 148.46. The yield on 10-year Japanese government bonds rose by 0.5 basis points to 1.575%, while the yield on 5-year bonds decreased by 0.5 basis points to 1.1%. One of the popular candidates to succeed Suga is Seiko Noda, a loyal supporter of "Abenomics" policies. "Seiko Noda is seen as having a strong pro-growth fiscal policy stance and may be perceived as more favorable for the Japanese stock market," wrote a Morgan Stanley MUFG Securities analyst. On August 19, the Nikkei stock index reached a historic high of 43,876.42 points driven by optimism over corporate governance reforms and investments in artificial intelligence. A Reuters survey showed that analysts expect the index to fall back to 42,000 points by the end of the year.