Japanese Prime Minister Shinzo Abe
Shinzo Abe is the third-longest serving prime minister in post-war Japan Reuters

Shares in Japan rose to their highest level in more than two decades on 23 October after Prime Minister Shinzo Abe won a fresh mandate in snap elections held over the weekend.

Tokyo's benchmark Nikkei 225 share average closed 1.1% higher at 21,696.65 points, representing a record 15th straight day of gains and the highest level recorded in the index since 1996.

Investor sentiment was buoyed by Abe's decisive win and expectations that the victory would lead to more fiscal stimulus and monetary easing.

Abe called snap elections in September in search of a greater mandate to confront rising tensions with North Korea and a demographics crisis.

His ruling Liberal Democratic Party's (LDP) coalition with the Komeito Party won 313 of the 465 seats in the lower house of Japan's parliament.

"While the win... had been widely expected, the strong mandate awarded via the landslide win made all the difference for markets this morning," trading firm IG said in a note.

"Representing fiscal and monetary policy continuity, the two-thirds majority rule provided the Nikkei 225 with the boost of more than 1.0%."

Abe's victory also sent the Japanese yen to a three-month low against the US dollar, which is a boost for the country's exporters as it makes their products cheaper and more competitive in overseas markets.

Japan's economy has expanded by about 10% since Abe first came to power in 2012, aided by a large scale stimulus programme from the Bank of Japan.