Business

Japan stocks rally after Prime Minister Abe election win

Japanese Prime Minister and ruling Liberal Democratic Party (LDP) president Shinzo Abe (C) places a red paper rosette on an LDP candidate's name to indicate an election victory at the party's headquarters in Tokyo on July 10, 2016 Image copyright Getty Images

Japan's share market rallied after Prime Minister Shinzo Abe's government claimed a major election victory over the weekend, spurring hopes of further economic stimulus under his leadership.

Tokyo's benchmark Nikkei 225 closed 4% higher at 15,708.82 points.

The broader Topix gained 3.8% to end at 1,255.79.

Mr Abe's party won in an election for the upper house of parliament despite concerns the country's pacifist constitution may be amended.

Mr Abe said the election result reflected support for his economic policies, which have been dubbed Abenomics.

He said their efforts at ending Japan's deflation problem and spurring growth are only "half done" which has fanned speculation they may release a new stimulus package soon.

US payrolls

Investors also took a positive cue from US jobs data on Friday, which came in stronger than expected.

US shares had finished higher last week on the back of the optimistic data.

China's Shanghai Composite added 0.23% to close higher at 2,994.92, while Hong Kong's Hang Seng index rose 1.5% to end at 20,880.5.

In Australia, the ASX/200 finished 2% up at 5,337.10. Markets there were reacting to the country's Prime Minister, Malcolm Turnbull, declaring victory for his Conservative coalition in last week's closely fought general election.

South Korea's benchmark Kospi was also in line with the broader regional trend, wrapping the day 1.3% higher at 1,988.54.

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