An election victory for Prime Minister Shinzo Abe didnt stop Japanese stocks from slumping today, as a slide in U.S. equities on concern about oils freefall and a stronger yen weighed on sentiment.
The Topix index declined 1.2 percent to 1,387.76 as of 9:00 a.m. in Tokyo after sinking 3.2 percent last week. The measure is poised for its lowest close since Nov. 17. The Nikkei 225 Stock Average slid 1.4 percent to 17,121.67. Abes ruling coalition won more than two-thirds of the 475 seats in the lower house, about the same as before yesterdays vote. The yen jumped 0.5 percent to 118.11 per dollar amid speculation traders were locking in profit after the results. The Standard & Poors 500 Index tumbled 1.6 percent on Dec. 12.
While Abes victory was overshadowed by the lowest turnout since World War II, he doesnt need to call another election until 2018, potentially making him the longest-serving premier in four decades. The Topix has almost doubled since the vote was called in 2012 that brought his government to power, even as data showed the nation slipped back into recession this year after a sales-tax increase dragged down consumption.
Futures on the Standard & Poors 500 Index were little changed. The selloff in the underlying equity measure on Dec. 12 picked up speed in the final hour as the Dow average plunged more than 100 points and the S&P 500 ended about 2 points above its average price for the last 50 days, a level monitored by technical analysts.
Source : Bloomberg