As the Dow Jones Industrial Average snagged its fifth consecutive record high close and the S&P 500 Index its second consecutive record high close Monday, Sept. 18, Japanese stocks also soared to new levels.
Shares on Japan's benchmark Topix index reached two-year highs on Tuesday with gains of 1.8%. The yen weakened for the third day in a row, strengthening demand from electronics makers, autos and banks, according to data from Bloomberg.
The Japanese currency dropped to near a two-month low against the dollar Tuesday as concerns focused on economic issues instead of the threat from nearby North Korea following a missile test that send a medium range weapon over Japan last weekend. A weaker yen offers a boost for export-related stocks.
Stocks were also sent higher on expectations that Prime Minister Shinzo Abe will hold a snap election more than one year early. Abe said Monday he'll make a decision on holding an election when he returns from a trip to the U.S.
The Topix had previously marked its best week since April on Friday, Sept. 15, with weekly gains of 2.9%. Japanese shares frequently strengthen around calls for new elections, Nomura Securities said, according to Bloomberg. Expectations that Abe and his coalition party will retain power has instilled confidence in investors.
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