• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Japan’s stock market emerges as clear winner of Suga’s abrupt resignation

September 7, 2021 by David Barret Leave a Comment

September 7, 2021

By Hideyuki Sano and Tom Westbrook

TOKYO/SINGAPORE (Reuters) – While the race for ruling party leader remains wide open, the Japanese stock market has emerged as a clear winner of Prime Minister Yoshihide Suga’s abrupt departure, with the broad Topix index soaring to 31-year highs.

Suga said on Friday he would not seek reelection at the Liberal Democratic Party (LDP) leadership race this month and would step down, setting the stage for a new premier. Suga’s one-year tenure as prime minister was marred by an unpopular COVID-19 response and dwindling public support.

Since Suga’s shock announcement, the Nikkei has gained almost 4% to its highest level since mid-April while the Topix vaulted nearly 3% to a level not seen since 1990, even though there is no clear front-runner. The LDP’s majority in parliament guarantees the winner will become prime minister.

“Basically his party, the LDP, is market-friendly, but Suga is not well liked due to the handling of the pandemic,” said Dave Wang, a portfolio manager at Nuvest Capital in Singapore.

“With him stepping down, LDP’s chances of winning (lower house elections later this year) go up, and markets are happier.”

As Suga’s departure removes a major source of concern for Japanese markets, market participants say they expect Japanese shares to catch up to other stock markets, given the steady rise in Corporate Japan’s earnings.

(Graphic: Japan earnings recovery – https://ift.tt/38KZBvd)

World stock prices have surged 15% so far this year, reaching record highs, on hopes of a strong global economic recovery from the COVID-19 pandemic, compared with 8% gains in the Nikkei.

Many investors regard vaccine minister Taro Kono and former foreign minister Fumio Kishida as two leading candidates.

Former internal affairs minister Sanae Takaichi could also enjoy a boost after local media reported former Prime Minister Shinzo Abe will be backing her.

“Kono is seen as a reformist and could be positive for stocks while there are some uncertainties on Kishida given his penchant for fiscal tightening. But these views could change depending on the policies they adopt,” said Ryota Sakagami, chief equity strategist at JPMorgan Securities.

Kishida has called for the reduction of income disparities, pledged support to the economically vulnerable, and said an economic stimulus package worth “tens of trillions of yen” was needed to combat the coronavirus.

Kono is thought to focus more on pro-business policies such as deregulation, while Takaichi, a member of the party’s most conservative wing, has said she wants to work towards achieving 2% inflation.

“For the time being, dealing with the coronavirus and economic normalisation would be the top priority for anyone and therefore their policy differences will probably not become evident,” said Sakagami.

Sakagami expected the Topix to rise to 2,100-2,200 by year-end, a 2.9% to 7.8% increase from current levels.

The stock rise also comes as Japan has made progress in vaccine rollouts, with 58% of the population now having received one COVID-19 dose.

“I think stock prices will keep rising. Our vaccination is likely to reach to the top-group levels soon,” said Masaru Ishibashi, joint general manager of trading at Sumitomo Mitsui Bank.

(Reporting by Hideyuki Sano in Tokyo and Tom Westbrook in Singapore; Editing by Ana Nicolaci da Costa)

Source Link Japan’s stock market emerges as clear winner of Suga’s abrupt resignation

David Barret
David Barret

Related posts:

  1. LG B1 OLED price, release date and specs
  2. HPE signs multi-billion dollar NSA computing deal
  3. American Eagle online sales drop on easing COVID-19 curbs, shares slump
  4. Tracking startup focus in the latest Y Combinator cohort

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Earth’s Energy Imbalance Is More Than Double What It Should Be – And We Don’t Know Why
  • We May Have Misjudged A Fundamental Fact About The Cambrian Explosion
  • The Shoebill Is A Bird So Bizarre That Some People Don’t Even Believe It’s Real
  • Colossal’s “Dire Wolves” Are Now 6 Months Old – And They’ve Doubled In Size
  • How To Fake A Fossil: Find Out More In Issue 36 Of CURIOUS – Out Now
  • Is It True Earth Used To Take 420 Days To Orbit The Sun?
  • One Of The Ocean’s “Most Valuable Habitats” Grows The Only Flowers Known To Bloom In Seawater
  • World’s Largest Digital Camera Snaps 2,104 New Asteroids In 10 Hours, Mice With 2 Dads Father Their Own Offspring, And Much More This Week
  • Simplest Explanation For “Anomalous” Signals Coming From Underneath Antarctica Ruled Out
  • “Lizard Shampoo” And Pagan Texts Suggest “Dark Age” Medicine Wasn’t So Dark After All
  • Japanese Macaques May Mourn Their Dead – As Long As They’re Not Maggot-Infested
  • This Is What You’d Hear If You Listened To Voyager’s Golden Record NASA Sent To Interstellar Space
  • RFK Jr’s New Vaccine Advisors Just Recommended Fall Flu Vaccines – But There’s A Catch
  • Controversial World-First Project To Create Human DNA From Scratch Takes First Steps
  • Humans Weren’t The First Species To Travel Around The Moon. They Lost This Race To An Unexpected Animal
  • When You Hack A Shark, You’re Exploiting A Glitch Billions Of Years In The Making
  • Wellness Whales, A New Blood Type, And A DJ Set From Space
  • Hate Flying Ants? We Used To Have Ones The Size Of Hummingbirds
  • ‘Tis The Season To See Titan Cast A Shadow On Saturn – Especially If You Are In America
  • World’s Bravest Vets Put Full Metal Dental Crown On A Bear For The First Time
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version