Asia Stocks Rally on Trade Optimism; Japan Hits Record High as Takaichi Wins PM Vote
Asian stocks climbed sharply on Tuesday, lifted by easing U.S.-China trade tensions and a strong performance on Wall Street. Japanese equities held near record highs as Sanae Takaichi, a fiscal dove, secured victory in Japan’s lower house vote to become the country’s first female prime minister.
Wall Street Strength Supports Asian Gains
U.S. markets provided a positive lead overnight, with all major stock indices closing higher. Investor sentiment improved as concerns over U.S. regional banks eased and corporate earnings beat expectations.
By 05:35 GMT, U.S. stock index futures were trading slightly higher, adding to the region’s upbeat tone.
Japan Stocks Surge as Takaichi Becomes Prime Minister
Veteran conservative Sanae Takaichi won the lower house vote in Japan’s parliament, officially clearing the path to becoming Japan’s 104th prime minister.
She secured 237 votes in the 465-member chamber, surpassing the required majority. Takaichi, leader of the Liberal Democratic Party (LDP), built a coalition with the Japan Innovation Party (Ishin) to strengthen her parliamentary backing.
She is expected to be confirmed by the upper house and sworn in later today. Markets celebrated the milestone, with Japan’s Nikkei 225 surging as much as 1.5% to a record 49,945.95 points, after gaining more than 3% a day earlier. The TOPIX index also rose 0.8%, marking a fresh all-time high.
Investors reacted positively to expectations that Takaichi, seen as fiscally accommodative, will support economic stimulus to reinforce Japan’s fragile recovery. However, both indices later trimmed gains during the parliamentary session amid uncertainty over her longer-term policy direction.
Trade Hopes Boost Regional Markets
In Washington, U.S. President Donald Trump said he expects to reach a “strong and fair” trade deal with Chinese President Xi Jinping during the APEC summit in South Korea. The remarks helped calm fears of a renewed U.S.-China trade war, encouraging investors across Asia.
China’s CSI 300 index rose 1.5%, while the Shanghai Composite gained 1.2%. Hong Kong’s Hang Seng jumped 1.8%, led by tech heavyweights like Alibaba Group (HK:9988).
South Korea’s KOSPI Hits Record High
In South Korea, the KOSPI index briefly hit a record high of 3,893.06, supported by strong semiconductor earnings and optimism over global tech demand. Shares of Samsung Electronics and SK Hynix both advanced. The index later settled 0.4% higher by mid-session.
Broad Gains Across Asia-Pacific
Elsewhere in the region, Australia’s S&P/ASX 200 climbed 0.8%, with mining stocks touching record highs after the U.S. and Australia signed a critical minerals pact to reduce reliance on China.
Singapore’s Straits Times Index rose 1.4%, while India’s Nifty 50 gained 0.5%, rounding out a strong session for Asian markets.
