Asian equities maintained their gains supported by Japanese stocks

Asian equities maintained their gains supported by Japanese stocks

Although US stock indices posted some minor losses, Asian equities extended their gains supported by Japanese stocks, as the victory by Prime Minister Abe during the weekend’s elections seems to have boosted sentiment and optimism.
The US equities succumbed to profit-taking ahead of the US corporate earnings later this week. Asian stocks were supported by Japanese stocks, which took advantage of yen’s weakness where it reached a three-month low.
With the absence of new political and economic tensions that may increase demand on safe havens, stimulus policies remains supportive for a weaker yen and strong equities.
Although the USD/JPY ticked down a bit, it is now testing a strong support zone and is expected to resume its rally towards 114.50.