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

  • Reuters
  • Stock Market News
Nikkei rises on hopes new PM will continue Abe's policies
Credit: © Reuters.

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. ruling Liberal Democratic Party will vote on Sept. 14 to select a new leader to succeed Abe, Jiji news agency reported. 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 (NYSE: BRKa ) BRKa.N acquired more than 5% stakes in five Japanese trading firms. 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. 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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