Nikkei Falls After Abe Steps Down

Mining and energy stocks rise but can't stem tide
By Sam Gale Rosen,  Newser Staff
Posted Sep 12, 2007 7:21 AM CDT
Japanese pedestrians read a copy of a special edition newspaper announcing the resignation of Japanese Prime Minister Shinzo Abe in Tokyo Wednesday, Sept. 12, 2007. Abe announced Wednesday he will resign,...   (Associated Press)
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(Newser) – A jump in the price of copper boosted mining and energy stocks in Asia, but Japan's Nikkei index fell nonetheless after news hit of PM Shinzo Abe's resignation. Some investors say the change will be good for Japanese markets in the longer term, however. "Abe was an ineffective prime minister who didn't do anything of value for investors," says a Singapore-based strategist.

Japanese stocks had originally jumped up by 1%, but the news about Abe brought them back down fast. The Nikkei closed half a percent off at 15,797.60. A Tokyo portfolio manager says the the resignation will impact markets for a while yet. "There's a good chance that this confusion is going to continue, so any buying in the market will be limited," he said.