Asia Stocks Climb as Japan Surges on Takaichi Optimism, China Gains on GDP Beat
Most Asian equities rose on Monday, led by a powerful rally in Japanese stocks, which hit fresh record highs on renewed expectations that fiscal dove Sanae Takaichi will become Japan’s next prime minister. Chinese markets also advanced after better-than-expected GDP data, signaling cautious optimism across the region.
Asian markets followed Wall Street’s positive lead, after U.S. officials adopted a more conciliatory tone on U.S.–China trade relations. High-level bilateral trade talks are expected to continue in the coming weeks.
S&P 500 futures rose 0.1% in Asian trading as investors turned their attention to a wave of third-quarter corporate earnings. Major reports are due from Netflix (NASDAQ:NFLX) on Tuesday and Tesla (NASDAQ:TSLA) on Wednesday.
Japan’s Nikkei Hits Record Highs on Takaichi Bets
Japan’s Nikkei 225 jumped nearly 3% to a new all-time high above 49,000 points, while the TOPIX index gained more than 2%, remaining near record levels.
Multiple Japanese media outlets reported that the ruling Liberal Democratic Party (LDP) had secured enough parliamentary support to form a coalition government with Takaichi as prime minister.
Takaichi, widely seen as a fiscal dove, is expected to increase government spending and oppose further interest-rate hikes by the Bank of Japan. Her leadership bid has already triggered a strong rally in Tokyo markets since her LDP election victory in late September, as investors bet on more accommodative fiscal policies.
A parliamentary vote on her appointment is scheduled for Tuesday, with Takaichi poised to become Japan’s first female prime minister.
China Stocks Lifted by GDP Surprise, Hong Kong Tech Rebound
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.9% and 0.7%, extending early gains after third-quarter GDP came in slightly above forecasts.
GDP expanded 4.8% year-on-year in Q3, topping estimates of 4.7%. Quarter-on-quarter growth also exceeded expectations, keeping year-to-date GDP above Beijing’s 5% target.
The data highlighted continued strength in China’s export-driven sectors, which are offsetting weak domestic consumption and ongoing property market pressure. Still, GDP growth marked China’s slowest pace in a year, underscoring persistent structural headwinds.
U.S.–China trade tensions remain a risk, alongside deflationary pressures and soft private investment. Yet, President Donald Trump recently said a prolonged trade war with China was “not sustainable,” and confirmed that talks with Beijing would continue in the weeks ahead.
Hong Kong’s Hang Seng Index outperformed regionally, jumping 2.5% from Friday’s six-week low. The rebound was fueled by a strong recovery in technology shares, which had suffered heavy losses last week.
Broader Asia Sees Gains Ahead of Earnings
Across the region, South Korea’s KOSPI gained 1.2%, nearing record highs on strength in semiconductor stocks. SK Hynix (KS:000660) climbed over 3% to a record, following upbeat TSMC (TW:2330) earnings last week. TSMC itself rose 2% in Taipei trade, maintaining record-level momentum.
In India, the Nifty 50 added 0.5% in morning trade, as investors largely brushed off Trump’s comments reaffirming 50% tariffs on Indian goods until Russian oil imports stop.
Singaporean markets were closed for a public holiday, while Australia’s ASX 200 edged up 0.1%.
Regional Earnings Season in Focus
The Asian Q3 earnings season gathers pace this week, with several key corporates set to report results:
- China Unicom (HK:0762) – Wednesday
- BOC Hong Kong (HK:2388), WuXi AppTec (SS:603259), and China Overseas (HK:0688) – Friday
- Hindustan Unilever (NSE:HLL), Dr Reddy’s Laboratories (NSE:REDY), and NTPC (NSE:NTPC) – throughout the week
- BHP Group (ASX:BHP) will release quarterly production figures on Tuesday
