Nikkei 225 closes up after audit finds tsunami funding was ‘misspent’

<p>The Nikkei 225 closed higher today after an audit revealed the tsunami fund is being wasted.</p>

The Nikkei 225 in Tokyo closed higher this morning (October 31st) after a government audit found the money intended for funding reconstruction projects after the March 2011 tsunami has been used for unrelated developments.

According to the BBC, builds financed by the $150 billion (£93 billion) kitty include an advertising campaign for Japan's tallest building, support for whaling research and roads in Okinawa.

Deputy mayor of Rikuzentakata Takashi Kubota told the Associated Press there have been no new buildings yet, even though half the town's houses were destroyed by the tidal wave.

The Japanese government has passed numerous supplementary budgets to fund reconstruction efforts in affected areas, but the audit revealed that unrelated work has been supported by the kitty on the basis it could boost the economic revival.

At close of play today, the Tokyo Nikkei 225 was higher by nearly one per cent to 8928.2 points.

Learn all about CFD trading strategies and the stock market at City Index. 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.