Tokyo stocks rose for the fourth straight trading day on Monday, with a key index ending at a two-month closing high as a falling yen and expectation for further monetary easing following next month's general election.
The benchmark Nikkei 225 Stock Average on the Tokyo Stock Exchange (TSE) gained 129.04 points, or 1.43 percent, from Friday to 9,153.20, its highest close since September 19th The broader Tokyo Stock Price Index, which includes all First Section issues on the TSE, advanced 10.82 points, or 1.44 percent, to 762.16, with 32 of 33 subindexes ending in positive territory.
Yen depreciation against other major currencies encouraged investors to buy export-oriented shares. The Japanese currency hit a seven-month low against the US dollar in the morning, topping the mid-81 yen level. At 4:45 p.m. (0745 GMT), the US dollar traded at JPY 81.32-36 against JPY 81.25-35 in New York and JPY 81.11-13 in Tokyo at 5 p.m. Friday.
There is speculation that main opposition party, which is likely to win December's general election, will call for aggressive monetary easing measures after forming the new government. Prime Minister Yoshihiko Noda dissolved the lower house of parliament Friday and called the December 16th election with launching the official campaign on Dec. 4.