Japan’s blue-chip Nikkei Stock Average briefly surpassed the 30,000 mark for the first time in five months on Tuesday morning as Prime Minister Yoshihide Suga’s resignation announcement continued to fuel investor optimism, according to Nikkei Asia.

The benchmark index was up 1.3% at one point in morning trade before closing 0.9% higher at 29,916, advancing for a seventh consecutive trading session. The broader Topix index also continued to climb, closing at its highest level since August 1990, when the asset bubble burst in Japan.

Suga announced last week that he would not run in the Liberal Democratic Party’s leadership election slated for later this month. The prime minister has struggled with falling approval ratings over his government’s handling of the coronavirus pandemic, and markets are optimistic that his stepping aside will pave the way for stronger leadership that is better able to tackle the coronavirus pandemic.

Investors also believe that having someone other than Suga as prime minister will increase the business-friendly LDP’s chances in the upcoming general election, which must be held by Nov. 28

Contenders to replace Suga are expected to unveil generous economic stimulus packages.

Source: Azerbaijan State News Agency