In the week Prime Minister of Japan Shinzo Abe became embroiled in, perhaps, the deepest political scandal over his five years at the helm of the government, however the country’s stock market did quite well and stood among the leaders globally as investors were sure he would find the way out.
The Nikkei index closed the week gaining 1%. Estimating in U.S. dollars, Japanese shares grew by 2.3% in the week, with Taiwan being the only that exceeded that figure. The index has stayed on positive track during the whole week, ignoring Monday’s confession by the ministry of finance that it had modified records concerning the sale of land at a discount to a school operator linked to Abe’s wife.
Possible connection to the school operator emerged over a year ago, nevertheless many investors pointed to Abe’s victory in election later. A lot of investors hold the opinion that the risk of Abe’s fall is petty and they do not deem it necessary to break their exposure to Japan’s shares.
Meanwhile Abe’s leadership has been very firm in Japan, with markets taking enormous advantage from the aggressive economic stimulus, known as Abenomics.