2 weeks Ago
TOKYO (AP) — Global shares rose Monday, as the yen dipped in the midst of political uncertainty after Japan's ruling party lost its majority in Parliament's lower house in weekend elections. France's CAC 40 edged up 0.7% in early trading to 7,552.
94, while Germany's DAX rose 0.5% to 19,549.65.
Britain's FTSE 100 added nearly 0.2% to 8,260.84.
U.S. shares were set to drift higher with Dow futures up 0.
4% at 42,503.00. S&P 500 futures gained 0.
5% to 5,876.50. In currency trading, the U.
S. dollar rose to 153.33 Japanese yen from 152.
24 yen. It was trading at 140-yen levels last month. The euro cost $1.
0817, down form $1.0803. The weak yen is a boon for Japan's giant exporters like Toyota Motor Corp.
, whose stock gained 4.1% in Tokyo trading. Nintendo Co.
gained 2.0%, while Sony Corp. rose nearly 2.
0%. Japan's ruling Liberal Democratic Party is still the top party, but several members failed to win reelection in Sunday's vote after a scandal involving unreported campaign funding. All told, the ruling coalition with junior partner Komeito secured 215 seats, down sharply from the majority of 279 it previously held, according to Japanese media.
Amid political uncertainty, the Bank of Japan is unlikely to take action any time soon on interest rates. The central bank has a monetary policy meeting later this week. Tokyo stocks rose.
Analysts say the ruling party defeat had been greatly expected and factored into markets from before. Japan's benchmark Nikkei 225 surged 1,8% to finish at 38,605.53.
Australia's S&P/ASX 200 gained 0.1% to 8,221.50.
South Korea's Kospi edged up 1.1% to 2,612.43.
Hong Kong's Hang Seng added less than 0.1% to 20,599.36, while the Shanghai Composite rose 0.
7% to 3,322.20. Company earnings reports, which have been mostly solid, continue to be a key focus for investors.
More than a third of the companies in the S&P 500 index have reported their latest quarterly financial results. Most of the results have beat analysts' forecasts. Companies from around the world are scheduled to report earnings in coming weeks.
The U.S. Federal Reserve raised its benchmark interest rate to its highest level in two decades in an effort to tame inflation back to 2%, without sinking the economy into a recession.
A key report on U.S. consumer spending is expected later this week, called the PCE.
Analysts expect it to show that the rate of inflation has eased to 2%. The central bank started cutting interest rates in September and economists expect another cut at its meeting in November. In energy trading, benchmark U.
S. crude fell $3.46 to $68.
32 a barrel. Brent crude, the international standard, fell $3.48 to $72.
57 a barrel. Analysts say oil prices declined in part because Israel's recent attacks on Iran weren't as drastic as some observers had expected and did not target oil facilities. AP Business Writers Damian J.
Troise and Alex Veiga contributed to this report. Yuri Kageyama is on X: https://x.com/yurikageyama.
