Asian stock markets extended their technology-driven rally on Tuesday, with Japanese equities leading regional gains. Shares in Japan surged to fresh record highs as investors embraced the so-called “Takaichi trade” following Prime Minister Sanae Takaichi’s decisive election victory.
Sentiment across the region was supported by modest gains on Wall Street overnight, where U.S. stocks closed higher. The Nasdaq outperformed other benchmarks, buoyed by a renewed rebound in technology and artificial intelligence-related shares. U.S. stock index futures were largely flat during Asian trading hours.
Nikkei hits fresh records near 58,000 after election result
Japan’s Nikkei 225 jumped as much as 3% to a new all-time high of 57,960 points, while the broader TOPIX index surged to a record level of 3,863.90. The gains followed a strong prior session, when the Nikkei climbed nearly 4% and the TOPIX advanced 2.3%.
The rally reflects growing optimism over Takaichi’s economic agenda, which markets view as supportive of growth, corporate earnings, and domestic investment. Her landslide election win over the weekend reinforced expectations that her government will pursue pro-business reforms, fiscal support, and policies aimed at boosting capital spending, innovation, and strategic industries.
Analysts at ING said the decisive result strengthens confidence in a more expansionary yet disciplined fiscal stance, alongside a stronger focus on Japan’s domestic priorities. They added that risk-on sentiment is likely to dominate markets in the near term.
Asian tech shares extend rally
Technology stocks across Asia continued to climb, extending recent gains after last week’s sharp sell-off in global tech shares driven by concerns over artificial intelligence disruption and stretched valuations.
South Korea’s KOSPI rose 0.5% after surging more than 4% in the previous session. Hong Kong’s Hang Seng added 0.5%, while the Hang Seng TECH index gained 1%.
In mainland China, the Shanghai Composite and the CSI 300 index traded mostly flat. Australia’s S&P/ASX 200 edged up 0.2%, while Singapore’s Straits Times Index slipped 0.3%. Futures linked to India’s Nifty 50 were little changed.
Investors across the region are now looking ahead to key U.S. economic data due later this week, including delayed employment and inflation reports, for fresh insight into interest rate expectations and the outlook for global growth.
