Tokyo, Feb 10: Global shares were mostly higher Tuesday as Japan’s benchmark set another record after a historic election win for the nation’s first female prime minister.
France’s CAC 40 edged up 0.2 per cent in early trading to 8,342.16, while Germany’s DAX lost nearly 0.2 per cent to 24,977.44. Britain’s FTSE 100 slipped 0.5 per cent to 10,339.55. The futures for the S&P 500 and the Dow Jones Industrial Average were up less than 0.1 per cent.
In Asian trading, Japan’s benchmark Nikkei 225 jumped 2.3 per cent to finish at 57,650.54, a record close. It jumped 3.9 per cent to a record on Monday after the landslide victory for Sanae Takaichi’s political party in Sunday’s parliamentary election. Takaichi is expected to push through reforms intended to boost the economy and stock market.
“Japan’s fiscal stance could loosen further because the LDP’s supermajority will enable the new government to implement policies with few obstacles,” Fitch Ratings said in a report following the election, referring to Takaichi’s Liberal Democratic Party.
“Policy choices under the new government are likely to focus on tax relief and growth-oriented investment spending, reflecting voter concerns over higher inflation and low income growth,” it said.
Hong Kong’s Hang Seng surged 0.6 per cent to 27,183.15, while the Shanghai Composite added 0.1 per cent to 4,128.37.
Australia’s S&P/ASX 200 declined less than 0.1 per cent to 8,867.40. South Korea’s Kospi gained less than 0.1 per cent to 5,301.69.
On Monday, the S&P 500 gained 0.5 per cent, and the Dow edged up less than 0.1 per cent. The Nasdaq gained 0.9 per cent.
The US government will offer the latest monthly update on the health of the job market on Wednesday. Friday will bring the latest monthly reading of inflation at the consumer level.
Either report could sway expectations for what the Federal Reserve will do with interest rates. The Fed has put its cuts to interest rates on hold, but a weakening of the job market could push it to resume more quickly.
Too-hot inflation could keep it on hold for longer. One of the reasons the US stock market remains close to records is the expectation that the Fed will continue cutting interest rates.
In other dealings early Tuesday, benchmark US crude added 5 cents to USD 64.41 a barrel. Brent crude, the international standard, advanced 22 cents to USD 69.26 a barrel.
The US dollar edged down to 155.55 Japanese yen from 155.88 yen. The euro cost USD 1.1902, down from USD 1.1918. (AP)
