TOKYO: Japanese stocks climbed on reports that Prime Minister Shinzo Abe is not going to implement sales tax to rejuvenate Japan’s fragile economic recovery, and call a snap election to secure his political position.
Abe will postpone a planned second sales tax hike by eighteen months and call a general election on the issue next month.
The Nikkei benchmark gained 1.4 percent to 17,356.75 by 0157 GMT, hitting fresh seven-year highs.
Japanese stocks were also encouraged by a solid Wall Street performance, and the dollar’s rise to a seven-year high of 116.11 yen overnight. The dollar was last at 115.84 at 0056 GMT.
The weak yen helped Japanese exporter shares, such as Toyota Motor Corp, which jumped 1.6 percent and Panasonic, up 1.0 percent.
Fujifilm Holdings shone, its shares jumping 4.7 percent after it said its Avigan anti-influenza drug will likely be approved for treating Ebola patients early next year.
The broader Topix gained 1.0 percent to 1,388.23, while the JPX-Nikkei Index 400 added 1.0 percent to
12,680.66.
