TOKYO (AP) — Asian shares rose Monday as the yen fell amid political uncertainty after Japan’s ruling party lost its majority in the lower house of parliament in weekend elections.
In currency trading, the US dollar rose from 152.24 yen to 153.76 Japanese yen. Last month it traded at the 140 yen level. The euro was at $1.0796, down from $1.0803.
The weak yen is a boon for major Japanese exporters such as Toyota Motor Corp., whose shares rose 3.7% in Tokyo. Nintendo Co. gained 2.6%, while Sony Corp. rose almost 2.0%.
Japan’s ruling Liberal Democratic Party is still the largest party, but several members failed to win re-election on Sunday after an unreported campaign finance scandal.
All told, the ruling coalition with junior partner Komeito won 215 seats, a sharp drop from the majority of 279 seats it previously held, Japanese media said. No change of government is expected, but the LDP may need a third coalition partner.
Tokyo shares rose. Analysts say the ruling party’s defeat was long expected and factored into the markets in advance.
The Japanese benchmark Nikkei 225 rose 1.6% to 38,527.52 in morning trading. Australia’s S&P/ASX 200 gained almost 0.1% to 8,217.80. South Korea’s Kospi rose 0.6% to 2,598.73. Hong Kong’s Hang Seng rose 0.1% to 20,614.74, while the Shanghai Composite rose 0.3% to 3,310.63.
On Wall Street, U.S. stock indexes closed last week drifting to a mixed performance, sending the market into its first losing week since early September.
The S&P 500 closed little changed after rising 0.9% earlier in the day. The Dow Jones Industrial Average fell 0.6%, also posting its first weekly loss after six straight gains. The Nasdaq index rose 0.6%.
Corporate earnings reports, which were mostly solid, remain a key focus for investors. More than a third of the companies in the S&P 500 index have reported their latest quarterly financial results. Most results exceed analyst expectations. Companies from around the world will report their earnings in the coming weeks.
Government bond yields ended last week largely higher. The yield on the 10-year government bond rose from 4.21% at the end of Thursday to 4.24% on Friday.
Yields have generally risen following reports showing the US economy remains stronger than expected. Wall Street will provide more updates on consumer confidence, employment and inflation next week.
The Fed raised its benchmark interest rate to a 20-year high in an effort to reduce inflation to 2% without sinking the economy into recession.
