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.

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