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Tokyo stocks surge on Japan PM Suga's departure

In this Aug. 17, 2021 file photo, Japanese Prime Minister Yoshihide Suga speaks during a news conference at his office in Tokyo. (Kimimasa Mayama/Pool Photo via AP)

TOKYO (Kyodo) -- Tokyo stocks extended their gains Friday afternoon on news that Prime Minister Yoshihide Suga will resign without seeking re-election in the ruling Liberal Democratic Party leadership race slated for later this month.

    As of 1 p.m., the 225-issue Nikkei Stock Average gained 524.99 points, or 1.84 percent, from Thursday to 29,068.50. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was trading at 2,014.98, up 31.41 points, or 1.58 percent, briefly rising to its highest level in 30 years.

    Suga said that he will not run in the LDP's leadership race on Sept. 29, effectively announcing his resignation. The comment came during the early afternoon session.

    "The market climbed on high expectations that a new government would implement new economic measures against the coronavirus fallout," said Maki Sawada, a strategist in Nomura Securities Co.'s investment content department.

    Shares sensitive to domestic demand extended gains in particular on growing hopes over the country's economic recovery, she added.

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