Europe open: Stocks track gains in Asia after Abe wins Japan elections

European stocks tracked gains in Asia on Monday as Japan Prime Minister Shinzo Abe declared victory in Sunday’s election.

Asian equities were given a boost as Abe said on Monday he would push ahead with his economic reform programme – known as Abenomics – after his ruling coalition won a majority of seats in Japan's upper house.

Michael Hewson, chief market analyst at CMC Markets, said some hoped Abe’s victory would make it easier to implement new reforms and a stimulus package in order to revive the flagging Japanese economy.

Meanwhile, analysts also continued to digest Friday’s better-than-expected US non-farm payrolls report which saw the S&P 500 close one point away from its record high seen on 21 May last year.

Monday’s economic calendar is thin on the ground with data so the focus will likely be on any political developments following Britain’s vote to leave the European Union.

The pace is set to pick up on Tuesday with German inflation data followed by China trade data on Wednesday and Thursday’s Bank of England interest rate decision. The BoE is expected to cut interest rates to address the fallout following the Brexit vote.

Meanwhile, oil prices fell as data on Friday from industry group Baker Hughes showed the number rigs looking for oil in the US rose by 10 to a total of 351, adding to concerns about the global supply glut.

Brent crude dropped 1.7% to $45.95 per barrel and West Texas Intermediate dipped 1.8% to $44.58 per barrel at 0904 BST.

On the company front, ThyssenKrupp rallied after the German steelmaker confirmed it was in talks with Tata Steel over sector consolidation.

Shares in Italian bank Monte Paschi advanced following reports that bank rescue fund Atlante will soon take on bad loans from Monte Paschi.