Nikkei Rises on LFP's Election Win; Yen Dips To 24-Year Low

The Nikkei index extended its winning streak to three days on Monday as the ruling camp's victory in Sunday's election provided reassurance about political stability, with gains boosted by the yen's drop to a new 24-year low against the US dollar in response to remarks by Bank of Japan Governor Haruhiko Kuroda, Mainichi Japan reported.

Photo Insert: BOJ Gov. Haruhiko Kuroda reiterated Monday at a meeting of the bank's branch managers that the BOJ will not hesitate to implement additional easing measures, if necessary.

The 225-issue Nikkei Stock Average closed at 26,812.3, up 295.11 points, or 1.11 percent, from Friday. The broader Topix index finished 1.44 percent higher, up 27.23 points, at 1,914.66.

Pharmaceutical, precision instrument, and transportation equipment issues led gainers in the top-tier Prime Market.

After BOJ Gov. Haruhiko Kuroda reiterated Monday at a meeting of the bank's branch managers that the BOJ will not hesitate to implement additional easing measures, if necessary, the Japanese yen momentarily plummeted to 137.28 against the dollar, its lowest level since September 1998, dealers said.

The revelation of stronger-than-expected US job data for June on Friday led to the yen's decline, as did expectations for significant interest rate hikes by the Federal Reserve and a larger gap between US and Japanese government bond yields, they added.

At 5 p.m., the dollar fetched 136.80-82 yen compared with 136.07-17 yen in New York and 135.83-85 yen in Tokyo at 5 p.m. Friday. The euro was quoted at $1.0111-0112 and 138.32-36 yen against $1.0181-0191 and 138.55-65 yen in New York and $1.0108-0110 and 137.30-34 yen in Tokyo late Friday afternoon.

The yield on the benchmark 10-year Japanese government bond fell 0.005 percentage point from Friday's close to 0.240 percent, tracking a drop in US Treasury yields during after-hours trading.

The Nikkei market quickly rose more than 500 points, or more than 2%, as the LDP and its coalition partner Komeito captured a total of 75 seats in Sunday's House of Councillors election, allowing them to retain a majority in the 248-member upper house.

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