Nikkei 225 climbs to 2-month high on stimulus hopes

<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.

Find out about the Nikkei 225 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.