Asian shares rise after Japan's prime minister resigns
TOKYO
Asian shares mostly rose with Japan's benchmark jumping higher Monday morning trading, despite the looming political uncertainty after Prime Minister Shigeru Ishiba announced he was stepping down as prime minister and head of his party.
Analysts said his announcement was expected for some time and welcomed it as moving things forward, although uncertainty remains as an election at the ruling Liberal Democratic Party, or LDP, will need to be held, with several legislators stepping forward as candidates.
“Markets may react short-term to the temporary uncertainty of lame-duck leadership, but this may resolve once a new leader is chosen. Meanwhile, the LDP’s position as a minority leading party is unlikely to change anytime soon, and as such compromise will be the name of the policy-making game,” said Naomi Fink, chief global strategist at Amova Asset Management.
Tokyo's Nikkei index gained 1.9 percent, with Japanese exporters benefiting from a slide in the yen's value, one dollar bought 148.14 yen in morning trade, up from 147.07 yen on Sept. 5. South Korea's Kospi gained 0.2 percent. Australia's S&P/ASX 200 lost 0.3 percent.
Hong Kong's Hang Seng edged up 0.3 percent, while the Shanghai Composite rose 0.2 percent.
Also Monday, Japan's Cabinet Office said the economy expanded at a stronger rate in the fiscal first quarter than previously estimated, at a seasonally adjusted 2.2 percent annualized rate, better than the earlier 1 percent rate as solid consumer spending and inventories lifted growth more than previously thought.
