Stocks on the Japanese stock exchange rose on Monday due to the yen's decline to its lowest level in the last three months following the loss of the majority by Prime Minister Fumio Kishida's coalition in parliament.
This event caused market optimism, and the Nikkei index rose by more than 2%. As experts note, a weak yen typically positively affects the Japanese economy, as it contributes to increased exports.
"The loss of the majority for the coalition in parliament has become an unexpected turning point for political events, but investors have decided to focus on the economic aspects of this situation," noted one of the analysts.
This political shift may affect the long-term prospects of the Japanese economy; however, at this moment, the stock market is reacting positively to the strengthening of the country’s export opportunities conditioned by the yen's decline.
