TOKYO: Tokyo shares rose 0.47 percent on Monday as investors welcomed an election victory for Japanese Prime Minister Shinzo Abe's ruling party.
The benchmark Nikkei 225 index added 68.13 points to 14,658.04, while the Topix index of all first-section shares was up 0.38 percent, or 4.55 points, to 1,216.53.
"The market saw the election results positively in general," said Katsuhiro Kondo, broker at Tokai Tokyo Securities.
"The outcome was no surprise but it underscored the fact that Japan's growth policies won't be changed and as a result, the recent buying momentum won't change."
Voters handed Abe a thumping victory in upper house elections Sunday, which will likely usher in a period of stability for politically volatile Japan.
The widely expected win means both chambers will be under government control, unblocking the bottleneck that has hampered legislation for the past six short-term premiers.
"With the uncertainty of an election out of the way, the outlook for the government's structural reform program is now clearer," Brokerage Nomura said in a note.
"Investors who had previously adopted a wait-and-see stance... could now step up their purchasing of Japanese stocks."
The market's rise Monday was capped by a weakening dollar with the greenback fetching 99.96 yen, well down from 100.50 yen in New York Friday afternoon.
Still, analysts said the yen was likely to resume its downward trend giving a boost to Japanese exporters which began late last year when Abe pledged to boost the economy with big-spending policies and central bank monetary easing.
"The results of Sunday's upper house elections are probably the best outcome for the equity markets, especially if, as seems likely, the yen resumes its gradual decline," said London-based Capital Economics.
The victory gives "the government... one less excuse not to press ahead with more painful economic reforms", it added.
Electronics giant Sharp fell 3.64 percent to 450 yen percent after the leading Nikkei business daily said it is considering a public offering that could raise more than 100 billion yen.
Sony was 1.41 percent higher at 2,219 yen, Nissan declined 0.71 percent to 1,113 yen and Uniqlo clothing chain operator Fast Retailing rose 0.82 percent to 36,450 yen. (AFP)
