Japan Shares Rise As Suga Announces He Quits Upcoming Leadership Election

Japan Shares Rise As Suga Announces He Quits Upcoming Leadership Election

Japan shares rise as Suga announces he quits upcoming leadership election. On Friday, Japanese shares jumped after Prime Minister Yoshihide Suga said he won’t run for party re-election as party leader.  

Japan’s Nikkei 225 surged 2% higher at 29,128.11, the Topix index ended the trading day 1.61% higher at 2,015.45. Japanese manufacturing stocks also reported gains, with Fanuc rising 3.46% while JFE Holdings jumped 6.49%.

Prime Minister Yoshihide Suga said Friday that he would resign after failing to control the country’s coronavirus surge.

“Under the continuous state of emergency declaration and soft lockdowns, we haven’t yet seen light at the end of the tunnel,” Hiromichi Shirakawa, chief economist for Japan at Credit Suisse said. “The next Japanese prime minister’s job is to restore the confidence of people who are “fairly exhausted,” rather than coming up with concrete economic fiscal policy.”

Mainland Chinese stocks tumbled, with the Shanghai composite slipped 0.55% while the Shenzhen component declined 0.769%.

In Hong Kong, the Hang Seng index fell 0.89%. Shares of Alibaba shed more than 3%.

In South Korea, Kospi gained 0.84%. Australia’s S&P/ASX 200 advanced 0.5% to close at 7,522.90.

Overnight stateside, the Dow Jones Industrial Average edged 131.29 points to 35,443.82 while the S&P 500 rose 0.28% to 4,536.95. The Nasdaq Composite jumped 0.14% higher to 15,331.18.

Oil prices were mixed during Asian trading hours, with international benchmark Brent crude futures surging 0.15% to $73.14 per barrel. U.S. crude futures slipped to $69.93 per barrel.