Election speculation buoys Nikkei 225

<p>Speculation concerning the Japanese election has lifted the Nikkei 225.</p>

With the Japanese election looming on the horizon, the Nikkei 225 in Tokyo has been buoyed today (November 26th), closing higher on speculation the opposition may come out on top.

Currently, the Liberal Democratic Party – which was in power for half a century before the incumbent Democratic Party was voted in three years ago – is leading in the polls.

This has boosted investor confidence, as the Liberal Democratic Party has said it will press the Bank of Japan for more aggressive monetary easing in a bid to prevent the country from sliding into recession if it wins next month's election.

Leader of the opposition Shinzo Abe said on Saturday that the central bank should take stronger steps in this regard, while the government ought to be involved in setting monetary policy.

At close of play this morning the Tokyo Nikkei 225 climbed by 22.1 points – or 0.2 per cent – to an index value of 9388.9 points.

Find out about the Japanese stock exchange and CFD trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.