Investing.com reports that as of today, Asian stocks gained momentum from tech sectors, with Japanese shares leading the performance as they hit new all-time highs after Prime Minister Sanae Takaichi won the election.
The markets also drew confidence from an overnight rise on Wall Street. The US stocks ended slightly higher, while NASDAQ showed a rise more than its peers due to the recent rebound in AI and technology-related stocks. US stock index futures traded unaltered during Asian hours.
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Japan’s Nikkei 225 Index increased by 3% to a new all-time high of 57,960 points, while TOPIX increased by 22% to record levels of 3,863.90. Nikkei climbed nearly 4% on Monday, and TOPIX contributed 2.3%.
The increase indicated a strong investor confidence in Prime Minister Takaichi’s policy framework. The market characterizes his framework as supportive of corporate profitability, growth, and domestic investment.
Takaichi gained a decisive election win over the weekend, which reinforced the expectations that her administration will move forward with fiscal support, pro-business reforms, and measures focused on enhancing innovation, capital investment, and strategic industries.
According to ING analysts, this victory will also strengthen her responsible yet expansionary fiscal spending and Japan-oriented foreign policy. Following this victory, the risk-on sentiments will dominate the entire market.
The technology stocks within the region recently gained momentum after concerns regarding artificial intelligence disruption and valuations triggered a sharp sell-off among global tech shares last week.
South Korea’s KOSPI increased by 0.5% after jumping over 4% during the previous session. Hong Kong’s Hang Seng also rose by 0.5% with Han Seng Tech subindex gaining 1%. While the blue-chip Shanghai Shenzhen CSI300 and Shanghai Composite in mainland China traded flat.
Australia’s S&P/ASX 200 index increased by 0.2% while Singapore’s Straits Times Index dropped by 0.3%. Futures related to India’s Nifty 50 were muted.
Asia’s investors are also looking forward to the key US economic data, including delayed jobs and inflation reports, that is expected to be released later this week. This data will further give signs regarding the outlook for interest rates and global growth.
