Stock market today: Global shares rise and the yen dips after Japan's ruling party loses majority

TOKYO (AP) — Global shares rose Monday, as the yen dipped in the midst of political uncertainty after Japan's ruling party lost its majority in Parliament's lower house in weekend elections.

France's CAC 40 edged up 0.7% in early trading to 7,552.94, while Germany's DAX rose 0.5% to 19,549.65. Britain's FTSE 100 added nearly 0.2% to 8,260.84. U.S. shares were set to drift higher with Dow futures up 0.4% at 42,503.00. S&P 500 futures gained 0.5% to 5,876.50.

In currency trading, the U.S. dollar rose to 153.33 Japanese yen from 152.24 yen. It was trading at 140-yen levels last month. The euro cost $1.0817, down form $1.0803.

The weak yen is a boon for Japan's giant exporters like Toyota Motor Corp., whose stock gained 4.1% in Tokyo trading. Nintendo Co. gained 2.0%, while Sony Corp. rose nearly 2.0%.

Japan's ruling Liberal Democratic Party is still the top party, but several members failed to win reelection in Sunday's vote after a scandal involving unreported campaign funding.

All told, the ruling coalition with junior partner Komeito secured 215 seats, down sharply from the majority of 279 it previously held, according to Japanese media.

Amid political uncertainty, the Bank of Japan is unlikely to take action any time soon on interest rates. The central bank has a monetary policy meeting later this week.

Tokyo stocks rose. Analysts say the ruling party defeat had been greatly expected and factored into markets from before.

Japan's benchmark Nikkei 225 surged 1,8% to finish at 38,605.53. Australia's S&P/ASX 200 gained 0.1% to 8,221.50. South Korea's Kospi edged up 1.1% to 2,612.43. Hong Kong's Hang Seng added less than 0.1% to 20,599.36, while the Shanghai Composite rose 0.7% to 3,322.20.

Company earnings reports, which have been mostly solid, continue to be a...