Asian shares notched a 29-month high on Monday as investors wagered monetary and fiscal policies globally would stay super stimulatory, while an upbeat reading on China's service sector augured well for continued recovery there.To get more news about WikiFX, you can visit wikifx official website.

　　MSCI's broadest index of Asia-Pacific shares outside Japan MIAPJ0000PUS rose 0.5% to reach its highest since March 2018, extending a 2.8% gain last week.

　　Chinese blue chips CSI300 firmed 0.7% to reach levels not seen since mid-2015. Surveys showed Chinese manufacturing activity edged back a tick to 51.0 in July, but services jumping a full point to 55.2 in a hopeful sign of reviving consumer demand. futures for the S&P 500 ESc1 climbed another 0.5%, while EUROSTOXX 50 futures STXEc1 added 1%.

　　Tokyo's Nikkei N225 rallied 1.9% aided by news Warren Buffett's Berkshire Hathaway (NYSE: BRKa ) BRKa.N had bought more than 5% stakes in each of the five leading Japanese trading companies. Nikkei had dipped on Friday after Prime Minister Shinzo Abe's resignation stirred doubts about future fiscal and monetary stimulus policies.

　　Those concerns were eased somewhat by news Chief Cabinet Secretary Yoshihide Suga, and a close ally of Abe, would join the race to succeed his boss. A slimmed-down leadership contest is likely around Sept. 13 to 15. was now on a host of Federal Reserve officials that are set to speak this week, kicking off with Vice Chair Richard Clarida later Monday as they put more flesh on the bank's new policy framework.

Relationship Between Abe and Japanese Yen

Shinzo Abe, the longest-serving Japanese Prime Minister in history, has suddenly resigned on August 28, citing health reasons. He will remain in his post until a successor is chosen. Mr Abe said he would still participate in the parliamentary vote and would not completely withdraw from politics.To get more news about WikiFX, you can visit wikifx official website.

　　On September 26, 2012, Shinzo Abe was elected as the president of the Liberal Democratic Party and won the general election later on December 26 in the year. After he became the president, the Japanese yen shrank from the peak of 77.13, while after he became the Prime Minister, the country‘s currency kept slipping till June, 2015 and bottomed at 125.86. The reason is the well-known 'Abenomics', which aimed to stimulate Japan's exports and prevent the worsening deflation by exerting a big depreciation in the value of the currency.

　　Japan‘s economy once recovered because of the Abenomics, and investors even regained confidence amid the successful Olympic bid. However, no one has ever expected that the outbreak of COVID-19 would completely destroyed the Abenomics and made Abe drained and resign from his post. After Abe announced his resignation, forex traders bought the yen aggressively as no one could anticipated who's his successor and whether the following policy would be in line with Abes.

　　On the other hand, Japan‘s stock markets went into a tailspin on the news of August 28. With the unwinding of carry trade and the rising risk aversion, the yen appeared to be strong and popular again. Under the Japan's uncertain political situation coupled with the continued weakness of the U.S. dollar, the yen has the opportunity to maintain its strength in the short term and challenge the two major resistance levels of 104.19 and 101.48.