Japanese stocks rose as investors assessed the potential benefits of a split Congress on U.S. policy.
Telecommunications and pharmaceutical companies contributed the most to gains in the benchmark Topix index. The U.S. Republicans' loss of the House of Representatives signals a drop in conservative political influence and may force President Donald Trump to align with mainstream Senate Republicans, according to an equity research note by SMBC Nikko Securities.
U.S. stocks rallied on Wednesday as investors bet a split Congress dimmed chances Trump's signature tax cuts will be reversed while reducing the possibility of major fiscal initiatives that might have pushed up interest rates. Trump softened his typical antagonistic tone toward Democrat Nancy Pelosi.
Topix +1.7% to close at 1,681.25 in Tokyo, Index Nikkei 225 +1.8% at 22,486.92.
Source : Bloomberg