Japanese stocks were performing well. In fact, it topped in terms of gains this year in comparison to 24 major developed equity markets. This was according to Bloomberg news.
Both the Topix index and the Nikkei 225 Stock Average rose, with 41 and 40%, respectively. This may have been caused by the country's 2% inflation rate pushed by Prime Minister Abe and Bank of Japan Governor Haruhiko Kuroda.
Japanese exporters also gained from the JPY100.65 to US$1 from last week's JPY99.22. Nissan gained, for a third week, 2.4% to JPY1,121. Meanwhile, Honda Motor Co. rose 1.8% to JPY3,875.
July 20 will determine if the Prime Minister's party, the Liberal Democratic, would get the majority vote. If so, the coalition would hold the strongest power since 2007. In addition, tomorrow's vote would also determine if "Abenomics" will be able to push through with its three-pronged plan. The Abenomics policy consisted of monetary easing, structural reform, and fiscal stimulus.
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