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Nikkei rises on hopes new PM will continue Abe's policies

Published 31/08/2020, 08:07
Nikkei rises on hopes new PM will continue Abe's policies
JP225
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TOPX
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8001
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8002
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8031
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8053
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8058
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9984
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IWHOL.T
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9434
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TOKYO, Aug 31 (Reuters) - Japanese shares ended higher on
Monday, recovering from sharp losses seen in the previous
session, as concerns about Prime Minister Shinzo Abe's
resignation were tempered by speculation that his possible
successor could continue his current policies.
The benchmark Nikkei share average .N225 rose 1.12% to
23,139.76 and added 6.59% for the month - its biggest since May.
The Nikkei dropped as much as 2.65% on Friday before closing
1.41% lower, as Abe's abrupt resignation for health reasons
stirred worries about future fiscal and monetary stimulus
policies.
But local media reports that Chief Cabinet Secretary
Yoshihide Suga would join the race to succeed Abe calmed nerves.
A Suga government could extend the fiscal and monetary stimulus
that defined the Abe regime. The ruling Liberal Democratic Party will vote on Sept. 14 to
select a new leader to succeed Abe, Jiji news agency reported.
"Today's rally is just temporary," said Hideyuki Ishiguro, a
senior strategist at Daiwa Securities. "Future corporate
performance will be crucial as the new administration is
elected."
The broader Topix .TOPX gained 0.83% to 1,618.18.
Leading sectoral gains on the main bourse, the wholesales
index .IWHOL.T jumped 4.52% as Warren Buffett's Berkshire
Hathaway BRKa.N acquired more than 5% stakes in five Japanese
trading firms. Marubeni 8002.T jumped more than 9.48%, Sumitomo Corp
8053.T climbed 9.09%, Mitsubishi Corp 8058.T rose 7.72%,
Mitsui & Co 8031.T added 7.35% and Itochu Corp 8001.T gained
4.19%.
Meanwhile, Japan's factory output rose in July at the
fastest pace on record, driven by automobiles and car parts,
indicating a gradual economic recovery from the COVID-19
pandemic. Among other shares, wireless carrier SoftBank Corp 9434.T
fell 4.59% after parent SoftBank Group Corp 9984.T said it
would sell up to 22% of the telco's shares, which could slash
its holding in the carrier to 40%.

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