Asia close: Topix surges on government pensions' allocation shift
Perhaps the most commented bit of news on Monday in Asia-Pacific trading was the resignation of two of Japanese prime minister Shinzo Abe’s lieutenants.
Two female ministers were forced to abandon their posts amid allegations of financial improprieties. That may negatively impinge upon his ability to approve an increase in the nation’s sales tax (to 10% from 8%) ahead of a year-end deadline by undermining his support amongst the public.
Even so, the Nikkei-225 shot higher by 3.98% to reach 15,111.23. The broader Topix index advanced by a similar amount in percentage terms, its biggest advance since mid-2013. Over the last three weeks it was pummeled into correction territory after retreating by over 10%.
The surge was motivated by a report in the Nikkei newspaper that the Government Pension Investment Fund will raise its allocation of local shares to 25% from 12%.
Gains elsewhere were more limited, with the Shanghai stock exchange’s main index gaining 0.66% to 2,356.73 points.
More news outlets picked up on Monday on the rumour that Beijing will inject another 200bn yuan into its largest lenders.
Taiwan’s main stock market gauge nevertheless moved higher by another 1.77% to 8,663.14, while South Korea’s Kospi also registered a large move to the upside, gaining 1.55% to 1,930.06 points.
Hong Kong’s Hang Seng edged higher by 0.20% to 23,070.26, nearly recouping all of the losses accumulated since the start of protests in the special administrative area.
Come Tuesday, and on the macroeconomic side of things, a raft of official Chinese statistics are scheduled for release first thing in the morning. These are to include the latest estimates for the country's rate of GDP growth, retail sales, industrial production and fixed asset investment.
The dollar/yen was 0.28% lower at 106.86.