Nikkei 225 closes higher as opposition rise in the polls
City Index December 6, 2012 4:45 PM
<p>The Nikkei 225 has closed higher as the opposing Liberal Democratic Party looks set to win the election.</p>
The Nikkei 225 has closed higher in Tokyo this morning (December 6th), as Japan's opposition party rose in the polls.
Now, the Liberal Democratic Party – which ruled the world's third-largest economy for 50 years before the incumbent Democratic Party took over in 2009 – looks likely to win a solid majority when election day comes around on December 16th, Reuters reports.
Prime minister Yoshihiko Noda's decision to dissolve parliament and call a snap election came as a surprise last month. The leader has been under a great deal of pressure as Japan struggles with falling economic output.
Former prime minister Shinzo Abe, who heads the Liberal Democratic Party, is calling for radical monetary easing to turn the state of the nation around and beat persistent deflation and the strong yen.
The party is now predicted to win 257 to 306 seats in the 480-seat lower house, according to major newspaper surveys.
At close of play in Japan this morning, the Nikkei 225 rose by 0.8 per cent to an index value of 9545.1 points.
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