DHAKA: Japanese shares see a third day of gains, leading a positive trend across the Asia Pacific region.

Investors remain optimistic that Prime Minister Shinzo Abe’s party’s election win over the weekend will mean there will be more stimulus policies, reports the BBC.

Abe had described the vote as an endorsement of his reform policies and promised new government spending to help the economy.

Tokyo’s Nikkei 225 index rose by 1.8% to 16,381.75 in morning trade.

In China, Hong Kong’s Hang Seng was up by 0.6% to 21,359.54 while the mainland Shanghai Composite edged 0.4% higher to 3,062.84.

Australia’s benchmark ASX/200 index in Syndey rose 0.5% to 5,382.60 points.

With the iron ore price seeing a strong rise overnight, commodity companies were among the best performers of the morning.

Atlas Iron was up by 9% after an 18% surge on the open. Fortescue gained more than 4% while BHP Billiton was up just over 2%.

In South Korea, the Kospi was up by 0.9% to 2,008.74 points.

BDST: 1256 HRS, JUL 13, 2016
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** Japanese shares continue their rally