HONG KONG (AP) — Stock markets in Japan and China, Asia's two biggest economies, rose Monday after Japanese conservatives who favor greater economic stimulus returned to power in a landslide election victory and China's new leaders promised more spending if needed to underpin a wobbly economic recovery.
Japan's Nikkei 225 index jumped 1.6 percent to 9,891.15, its highest level since April, after the country's Liberal Democratic Party swept back into power at weekend elections. Party chief Shinzo Abe, almost certain to become prime minister, favors increased spending on public works and setting a 3 percent economic growth target.
"The outcome of the Japan election should help support sentiment in the region," strategists at Credit Agricole CIB said in a research note.
In mainland China, the Shanghai Composite index rose 0.8 percent to 2,168.00 and the smaller Shenzhen Composite index climbed 0.6 percent to 821.17. On Sunday, China's new Communist Party leaders under party General Secretary Xi Jinping pledged a "proactive fiscal policy" and "prudent monetary policy" in a statement carried by the official Xinhua News Agency. They were references to the willingness to boost spending if needed and keep credit easy so long as inflation stays low.
The optimism failed to rub off on other Asian markets, which retreated slightly.
South Korea's Kospi was less than 0.1 percent lower at 1,994.04 and Hong Kong's Hang Seng was down 0.1 percent at 22,584.98. Australia's S&P/ASX 200 shed 0.2 percent to 4,574.90. Benchmarks in Taiwan and New Zealand also fell.
On Wall Street on Friday, the Dow fell 35.71 0.3 percent to close at 13,135.01 while the Standard & Poor's 500 index fell 0.4 percent to 1,413.58. The Nasdaq composite sank 0.7 percent to 2,971.33.
In currencies, the euro weakened slightly to $1.3155 from $1.3159 in late trading Friday. The dollar fell to 83.99 Japanese from 83.46 yen.
Crude prices rose. Benchmark oil for January delivery was up 18 cents to $86.91 per barrel in electronic trading on the New York Mercantile Exchange. The contract settled at $86.73 on Friday.
Hey, The Supreme Court Might Decide On ‘Assault Weapons’ After All
ICYMI: Triumph the Insult Comic Dog ends campus political correctness as we know it
Watch This Fast Food Worker Explain Why She Deserves to Be Paid More Than Paramedics
Flint’s Water Poisoned by Federal, State and Local Government Failures
Hickok45 Has Huge Hands! Or Maybe Something Else Is Going On...
Ridiculously Hilarious: MSNBC's Mitchell Gets Bad Case of the Vapors Over Cruz Ad Mocking Hillary | RedState
George Soros: Top 10 Reasons He Is Dangerous | Human Events