FX.co ★ Japanese Shares Rise as Ishiba Stays in Power

In post-holiday trading on Tuesday, the Nikkei 225 index increased by 1% to approximately 40,200, while the broader Topix Index achieved a 0.9% rise to reach 2,860. This momentum extended last week's upward trend as investors processed the results of the weekend's election. Although Japan’s ruling coalition did lose its majority in the upper house, this outcome was anticipated by market participants. Crucially, Prime Minister Shigeru Ishiba is expected to continue in his role, mitigating concerns about potential political instability or an abrupt resignation. Ishiba underscored his ongoing dedication to addressing critical issues such as managing tariff negotiations with the United States and other essential policy areas. Key stocks that experienced notable gains included SoftBank Group, rising by 4.9%, Fujikura with a 4.3% increase, Mitsubishi Heavy Industries gaining 5.5%, Advantest climbing by 2.2%, and Mitsubishi UFJ Financial advancing by 1.7%.