Tokyo stocks open higher with eyes on Japan politics

TOKYO: Tokyo stocks opened higher on Monday with investor focus shifting to Japanese politics after Prime Minister Yoshihide Suga said he would not stand for re-election.

The benchmark Nikkei 225 index was up 1.31 percent or 380.52 points at 29,508.63 in early trade, while the broader Topix index gained 0.93 percent or 18.82 points to 2,034.27.

"Japanese shares are likely to move upwards and seek their ceilings amid developments in Japanese politics," Okasan Online Securities said.

Nikkei closes up for fourth straight session

Suga said Friday he will not run in his ruling party's upcoming leadership vote, throwing open the race for the next premier of the world's third-largest economy.

The news prompted a positive reaction from the Tokyo market on Friday, with the Nikkei index ending more than two percent higher.

"Last week, foreign investors returned to buy Japanese stocks, judging that the Liberal Democratic Party will avoid a drubbing in the general election, after Prime Minister Suga said he will step down," said Masayuki Kubota, chief strategist of Rakuten Securities.

Even before Friday, "Japanese shares had been rebounding, because they were relatively cheap," Kubota added.

The dollar fetched 109.80 yen in early Asian trade, against 109.73 yen in New York on Friday.

Tokyo shares were broadly higher, with investment giant SoftBank Group trading up 0.52 percent at 6,232 yen, Uniqlo operator Fast Retailing up 1.67 percent at 75,880 yen, and chip-testing equipment maker Advantest up 1.97 percent at 10,340 yen.

Airlines were also higher with ANA Holdings trading up 1.64 percent at 2,665.5 yen and Japan Airlines up 2.64 percent at 2,448 yen.