Yen falls as Japan forms new govt, supporting Nikkei

Yen falls as Japan forms new govt, supporting Nikkei

Expectations that Japan's incoming prime minister will pursue drastic stimulus policies to drive the country's economy out of deflation helped weaken the yen and underpinned the Nikkei on Wednesday, while Asian shares were capped in thin holiday trade. Singapore, Malaysia, Indonesia, the Philippines and South Korea were closed on Tuesday for the Christmas holiday, reopening on Wednesday. Hong Kong and Australia remain closed on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent, after rising 0.3 percent the previous day on the back of a surge in Shanghai shares to five-month highs and a jump in Taiwan shares.