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Posted by ivan on December 17, 2012

Japanese shares rose and the yen dipped after Shinzo Abe-led Liberal Democratic Party won Japan's general elections.

The Nikkei 225 index rose 1% and the Japanese currency fell to a 20-month low of 84.48 yen against the US dollar.

Mr Abe has said he will implement measures to help revive the world's third-largest economy, which has been battling years of sluggish growth.

He has also promised to take steps to weaken the yen and fight deflation.

"The Liberal Democratic Party's (LDP) big victory is in line with market expectations and it will help to keep the yen weak and share prices high, at least for now," said Kyohei Morita, chief economist at Barclays Securities Japan.

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