Tokyo stocks extend gains amid Japan’s ruling party election

TOKYO, Sept. 27 (Xinhua) — Tokyo stocks continued its upward trend on Friday as the country’s ruling party held an election for a new leader to succeed outgoing Fumio Kishida.
Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, jumped 2.32 percent, or 903.93 points, to close at 39,829.56, marking the first time in almost two months to surpass the 39,000-threshold.
Lawmakers from Japan’s ruling Liberal Democratic Party (LDP) started voting for a new leader on Friday afternoon and the market has betted on female hopeful Economic Security Minister Sanae Takaichi to win, expecting her to adopt pro-growth economic policies if chosen.
The voting results came after the market close, with former Defense Minister Shigeru Ishiba elected the party chief in a runoff against Takaichi.
The yen’s depreciation, dropping to the 146-yen range against the U.S. dollar, attracted foreign speculative buyers to Nikkei futures, further bolstering the market. Export-related stocks saw significant gains due to the weaker yen.
The broader Topix index also rose on Friday, closing 19.82 points higher, or 0.73 percent, at 2,740.94.
On the top-tier Prime Market, declining issues outnumbered advancers by 928 to 642, with 31 issues remaining unchanged. ■