Japan’s Nikkei rises 2% on weaker yen

Japan’s Nikkei share average rose more than 2% on Tuesday, helped by a continued decline in the yen.

The Nikkei ended up 2.32% at 39,829.56, its highest close since July 19, before final results showed former Defense Minister Shigeru Ishiba beating Economic Security Minister Sanae Takaichi in a runoff election. The broader Topix index closed up 0.73% at 2,740.94.

Analysts said the market was reacting to Takaichi’s lead in the first round of the election. She was a supporter of the economic stimulus policies of late former Prime Minister Shinzo Abe and a vocal opponent of further interest rate hikes in Japan.