Asian markets mixed, Tokyo up on election result

HONG KONG: Asian markets were mixed Monday, with Japanese shares soaring and the yen tumbling after a landslide election win for the conservative opposition.

The Japanese currency hit a year- and- a- half low against the dollar and multi-month lows versus the euro, a boon for exporters, as investors bet on more central bank easing by the country’s incoming government.

Tokyo climbed 0.94 percent, or 91.32 points to 9,828.88, Sydney closed down 9.7 points, or 0.21 percent, at 4,573.4 and Seoul shed 0.60 percent or 11.97 points to 1,983.07.

Hong Kong shed 0.41 percent, or 92.37 points, to 22,513.61 but Shanghai ended up 0.45 percent, or 9.71 points, at 2,160.34 on hopes for pro- growth domestic policies from Beijing to boost the economy after a key meeting at the weekend.

China “will continue to implement the proactive fiscal policy and prudent monetary policy in 2013” and make increasing domestic de- mand a top priority, state media said Sunday after a key conference that sets the nation’s economic goals.

In Japan the Liberal Democratic Party (LDP) was expected to oust the ruling Democratic Party of Japan (DPJ), and its leader Shinzo Abe has vowed to press for a more aggressive economic policy to kickstart the economy.

“The election results were very much in line with market expectations. A relief rally is in order, helped by the stronger dollar,” SMBC Nikko Securities general manager of equities Hiroi- chi Nishi told Dow Jones Newswires.

“Next, investors will be eager to see the kinds of concrete policy measures that the new government proposes.”

Tokyo Electric Power (Tepco), operator of the Fukushima nuclear plant, soared almost 33 percent, leading a rally in energy firms on expectations the new government will likely shelve any short-term plans to ditch atomic power.

The DPJ vowed this year to ditch nuclear power by 2040, bowing to

public pressure as thousands gathered to protest outside Noda’s official residence.

But it quickly backpedalled on that pledge with a more vague promise to work toward a nuclearfree country.

The business friendly Liberal Democratic Party leader Shinzo Abe derided the zero-nuclear goal as unrealistic and “irresponsible”—and hinted at keeping atomic power.

In currency markets the dollar soared to 84.30 yen in early Tokyo trade, its highest since April last year, before easing back to 83.95 yen in the afternoon, still well up from 83.52 yen in New York on Friday.