The statements of the leader of the Japanese Liberal Democratic Party Shinzo Abe, the likely winner of the December 16 elections, have given wings to the Tokyo stock exchange. Abe stated that he will put pressure on the Bank of Japan for a massive monetary expansion to defeat the deflation that has plagued the economy for decades and give way to moderate inflation (see the 'spark' below). The Nikkei index is rising by around 2%, and even the regional index, despite the umpteenth slide of the Shanghai stock exchange, gains 0,7%, which however is not enough to avoid a negative change in the Asian stock exchange week.
According to analysts, the Japanese measures, to the extent that they are introduced (we need to win the elections and convince the central bank) will especially benefit the banks, and the advice is therefore to focus on bank shares.
The euro is recovering, at 1,277 while the yen, as was to be expected, has weakened, passing 81. Gold is also weak, at 1713 $/ounce.
