Nikkei 225 climbs to 2-month high on stimulus hopes
City Index November 19, 2012 4:15 PM
<p>The Nikkei 225 has made gains as investor stimulus hopes rise in light of the upcoming general election.</p>
The Nikkei 225 stock index in Tokyo has climbed to a two-month high this morning (November 19th) on mounting expectations that Japan's main opposition party will win the upcoming election and encourage monetary policy easing.
Shinzo Abe, the leader of the Liberal Democratic Party, is calling for the Bank of Japan to stimulate the world's third-largest economy and his party is ahead of the incumbent Democratic Party in the polls.
The Liberal Democratic Party ruled the nation for 50 years before the Democratic Party took over leadership in 2009.
According to Reuters, analysts claim Japanese stocks could stay strong throughout the general election, which is set for December 16th, but profit-taking may be possible as early as this week due to the pace of appreciation.
The Nikkei 225 closed 1.4 per cent lower to an index value of 9153.2 points – which is a rally of 129 points.
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