Nikkei climbs to 1-week high
near-term, we can be bullish on the Nikkei and bearish on the Japanese yen. Comments by U.S. President Barack Obama that he won't sign off on more tax cuts for the wealthy, and unyielding remarks from Republican leaders earlier this week, signal a long period of negotiation and brinkmanship that could leave a cloud of uncertainty over the economy.
Worries over the so called fiscal cliff in the United States have been weighing on global equities, including Japanese stocks, with the Nikkei falling for seven sessions in a row from Nov. 5 to 13.
The benchmark had lost 4.3 percent during the losing streak, its longest such run in seven months. But it is still up 3.5 percent so far this year.
The broader Topix rose 1.1 percent to 730.58 in active trade in Thursday's morning session, with volume at 65 percent of its full daily average for the past 90 days. NEAR-TERM POSITIVE
If the new cabinet took a more proactive line on monetary policy, the appointment of the new (BOJ) governor and deputy governors could reflect that orientation, Nomura strategists wrote in a note.
We might also see expectations for an improvement in the chilly relationship with China and for government spending. We think such expectations would produce a positive response on the equity markets, at least in the near term.
But a trader said he doubted an LDP government would have any long-term positive impact on the Nikkei as the party was in power for a
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