Japanese stocks eked out another record Tuesday following the weekend election of a pro-stimulus advocate to lead the country's ruling party, while gold also hit a new high amid the US government shutdown and French political upheaval.

The election of Sanae Takaichi -- expected to become Japan's prime minister this month -- ramped up optimism that she will embark on a campaign of monetary easing.

That sent the Nikkei 225 soaring almost five percent Monday and hammered the yen as investors began questioning the likelihood that the Bank of Japan will continue its interest rate hikes.

And the index continued its run-up on Tuesday, though it pared its earlier gains to end marginally higher. The yen also held losses.

Takaichi's victory "removes uncertainty about the country's policy direction", said Saxo Markets' Charu Chanana. "Her agenda is expected to continue a blend of fiscal support and ultra-easy monetary policy.

"For investors, that continuity means no abrupt tightening and ongoing coordination between the government and the Bank of Japan."

Yields on 30-year Japanese bonds hit their highest level, reflecting fears the country's........

© International Business Times