If History’s a Guide, Japan Stocks Are Set for an Election Rally
- Topix has risen ahead of voting day in past five elections
- Dissolving parliament a ‘buy sign’ for Japan stocks: analyst
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Prime Minister Fumio Kishida has so far done little to impress stock traders unnerved by talk of higher taxes. But if history repeats itself, the Japanese leader should expect to see shares take off soon as Japan prepares to go to the polls.
The benchmark Topix tends to rise ahead of the formation of a new parliament, as expectations grow for fresh economic and financial stimulus. Kishida, who was appointed prime minister earlier this month, will dissolve parliament on Thursday and has called for a general election for Oct. 31.