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TOKYO, Nov 1 (Reuters) - Japanese shares jumped on Monday, with the Nikkei hitting a one-month high, a day after Prime Minister Fumio Kishida’s ruling party held on to a majority in a parliamentary election and raised hopes of a stable government.
The Nikkei share average rose 2.4% to 29,570.56, reaching its highest level since late September, while the broader Topix gained 1.70% to 2,035.14.
Kishida’s conservative Liberal Democratic Party (LDP) retained a majority in the powerful lower house in Sunday’s parliamentary election and is expected to compile a stimulus to support pandemic-hit businesses.
“The market was lifted by a positive surprise of the LDP’s solo majority win at the election. Investors are now more confident in a stable, long-term administration of the party,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
A poorer showing by the LDP would have heightened expectations that Kishida could follow predecessor Yoshihide Suga in becoming another short-term premier. (Reporting by Tokyo Markets Team; Editing by Ramakrishnan M.)
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