Tokyo stocks soar 3.55pc on Japan vote stimulus hopes
"But the question is whether or not stock prices can keep up this pace"
TOKYO (AFP) - Tokyo stocks soared Monday morning as traders cheered a strong US jobs report while a landslide victory for Japan s ruling coalition in weekend elections boosted stimulus hopes.
The Nikkei 225 surged 3.55 percent, or 535.55 points, to 15,642.53, while the broader Topix index of all first-section shares climbed 3.51 percent, or 42.47 points, to 1,252.35.
Prime Minister Shinzo Abe s coalition swept weekend parliamentary elections despite lukewarm public support for his economic policies, dubbed Abenomics, and wariness over amending the country s pacifist constitution.
The victory fanned speculation Tokyo would soon launch a stimulus package, reportedly worth as much as 20 trillion yen ($120 billion), to kickstart growth.
"Investors are basically welcoming the victory of Abe s ruling coalition," Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking, told AFP.
"But the question is whether or not stock prices can keep up this pace."
Nintendo was a stand-out, rocketing more than 20 percent and extending a rally sparked by news that its smartphone game debuted at the top of gaming charts.
The videogame giant jumped 22.80 percent to 19,980 yen as Pokemon GO -- which connects a user s real-world location to the game as they try to catch on-screen characters -- launched in the US and Australia and was an immediate hit with fans.
In March, the Super Mario maker released Miitomo, its first-ever mobile game, as it moved away from a longstanding consoles-only policy.
Optimism boosted by Friday s strong US jobs report, which eased fears over a slowdown in the world s top economy, pushing Wall Street and European equities higher.
Private businesses and government authorities across the United States generated 287,000 new positions last month, 112,000 more than analysts had expected.
Toyota and Nissan both surged about four percent to 5,258 yen and 955.8 yen, respectively. Honda jumped 3.39 percent to 2,560.5 yen.
Banking-linked shares also pushed higher, with Mitsubishi UFJ Financial Group rising 4.05 percent to 446.1 yen and rival Sumitomo Mitsui Financial Group tacking on 2.34 percent to end the morning at 2,840 yen.
Sony soared 4.28 percent to 3,142 yen and factory robot maker Fanuc advanced 3.61 percent to 16,060 yen.
Energy explorer Inpex added 2.27 percent to 758.4 yen and refiner JX Holdings gained 2.20 percent to 389.4 yen.
