Asian equity markets opened the week on a strong footing on Monday, led by Japan after a decisive political outcome boosted investor confidence across the region.
Japan’s benchmark Nikkei 225 surged to a record high above 57,000, gaining 4.45% as of 3:26 am CET, after the ruling Liberal Democratic Party secured a two-thirds majority in the House of Representatives. The landslide victory has handed Prime Minister Sanae Takaichi a strong mandate, reducing political uncertainty and reinforcing expectations of pro-growth economic policies.
The rally in Japan spilled over into other Asian markets. South Korea’s KOSPI jumped 4.36%, rebounding sharply from last week’s losses amid renewed risk appetite. Australia’s S&P/ASX 200 rose 1.93%, supported by broad-based buying across sectors.
Chinese and Hong Kong equities also traded higher. The Hang Seng Index advanced 1.81%, while mainland China’s Shanghai Composite gained 1.22% and the Shenzhen Composite climbed 1.75%, reflecting improved regional sentiment.
In currency markets, the Japanese yen strengthened modestly, with the US dollar trading about 0.20% lower against the yen at 156.80 around 3:30 am CET. The move in the yen came as markets assessed the implications of a strong political mandate for Japan’s fiscal and monetary outlook.
Overall, the sharp rally in Asian markets was driven by political clarity in Japan, a revival of risk appetite, and strong gains in regional equities, with the Nikkei’s record-breaking move setting the tone for the session.
