Nikkei reaches new highs on cabinet reshuffle hopes

<p>The Nikkei was on a high today on hopes that a cabinet reshuffle will revive Japan’s economy.</p>

Japan's Nikkei reached a seven-month high today (September 3rd) as investors hope a cabinet reshuffle by prime minister Shinzo Abe will revive Japan's economy.

Investors bet that the expected appointment of Yasuhisa Shiozaki to the Japanese cabinet later today would bring additional investment in the stock market by Japan's large public pension fund.

"The line-up of Abe's new cabinet and top party posts are positive for Japanese stocks on three fronts," Ryota Sakagami, chief strategist at SMBC Nikko Securities told Reuters.

"You can expect faster reforms. This will lead to unity in the party and strengthen his government, and the number of women in the main posts is the highest ever," he added.

The Nikkei share average rose 0.4 per cent to 15,728.35, the third consecutive day of gains.

Markets were also boosted by exports as the yen weakened to an eight-month low.

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