By Reuters
TOKYO: Japan鈥檚 Nikkei share average climbed on Tuesday, as investors returning from an extended holiday weekend reacted positively to the outcome of the upper house election, which aligned with market expectations.
As of 0023 GMT, the Nikkei was up 1.1% at 40,241.61. The broader Topix rose 0.78% to 2,856.49.
Japan鈥檚 ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba鈥檚 grip on power even as he vowed to remain party leader.
The election was closely monitored as Ishiba鈥檚 party also lost control of the more powerful lower house in elections last year and his Liberal Democratic Party was facing calls from opposition parties pledging to cut taxes.
鈥淚nvestors bought stocks as the election outcome was in line with their expectations,鈥 said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
鈥淎nd they thought the election outcome would not have much impact on Japan鈥檚 policy framework immediately, as Ishiba said he has no pl