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.

Learn about the Asian markets 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.