Japan’s ruling coalition already enjoys a two-thirds majority in the lower house but it needs a super majority in the House of Councilors to start a parliamentary motion for changing the constitution.
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The dollar extended those gains on Monday, gaining nearly half a percent hit a four-month high against a basket of currencies of 96.728.
Despite concerns over a stagnant economy, 18 and 19 year olds getting the right to vote for the first time, and many citizens having reservations about a more militarized Japan – Japanese voters felt Prime Minister Abe is doing a satisfactory job as leader and still have faith in Abenomics.
The Nikkei 225 Stock Average climbed 3 percent to 16,173.47.
Helped by hopes for more stimulus packages around the world, investors are covering short positions taken in the past two weeks, although they continue to worry about the fallout from Brexit and global economic slowdown in the long term, traders say.
Abe described the election results as the voice of the people “urging us to vigorously advance the current economic policies”. The election was said to be a referendum on Abe’s economic stimulus plan dubbed “Abenomics”, which uses the “three arrows” of fiscal stimulus, monetary easing and structural reforms.
On Friday, the US labor department reported that some 287,000 jobs were created in June, which was significantly higher than economists had predicted for the month.
The Japanese yen continued to fall against the US dollar, with the dollar-yen currency pair rising as high as 103.28 intraday after touching levels as low as 100.45 on Monday.
The benchmark Nikkei 225 index surged 3.98 percent, or 601.84 points, to finish at 15,708.82, while the broader Topix index of all first-section shares climbed 3.79 percent, or 45.91 points, to 1,255.79, its biggest one-day gain in almost five months.
Exporters were the biggest boosts to the Topix, with Toyota Motor Corp. rising 3.7 percent and Honda Motor Co. adding 3.4 percent. Mazda Motor Corp. surged 7.2 percent, adding to Monday’s 6.7 percent gain.
Nexon Co. slumped 2.4 percent. Additional information came from reporter Youmi Kim in Seoul. Secondly, it was supported by the outstanding job report of June, in which the United States economy added 287,000 new jobs, proving its resilience to the global market turmoil once again. Alcoa Inc. unofficially kicked off the US earnings season after markets closed Monday, reporting profit for the second quarter that topped analysts’ estimates.
“We have always set a goal of revising the constitution.that is my duty as president”, Abe said after the results of the election trickled in.
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The leading measure of Japanese stock prices rose on Monday, hours after the ruling coalition’s victory.
