Asian stocks mostly climbed on Monday morning, with Japan’s benchmark index showing notable gains, following the announcement by Prime Minister Shigeru Ishiba that he is resigning as both the country’s leader and head of his party. The move has introduced political uncertainty, though analysts had anticipated it.
Observers welcomed the development as a step forward, while noting that the upcoming election for leadership of the ruling Liberal Democratic Party (LDP) could bring short-term unpredictability, with several lawmakers entering the race, reports AP/UNB.
Japan’s Nikkei 225 advanced 1.4% to 43,630.54 during morning trade. South Korea’s Kospi rose 0.2% to 3,211.36. In contrast, Australia’s S&P/ASX 200 slipped 0.3% to 8,845.50.
Elsewhere in Asia, Hong Kong’s Hang Seng increased 0.3% to 25,487.02, while China’s Shanghai Composite added 0.2% to the same level.
Economic data also boosted sentiment in Japan, with the Cabinet Office reporting that the economy grew faster than initially estimated in the first quarter of the fiscal year. The seasonally adjusted annualized growth rate came in at 2.2%, surpassing the earlier 1.0% estimate, driven by stronger consumer spending and inventory gains.
In the United States, Wall Street ended last week lower amid uncertainty over the labor market’s influence on potential Federal Reserve interest rate cuts.
The S&P 500 briefly gained in early trading but closed 0.3% below its record high set the previous day. The Dow Jones Industrial Average fell 220 points, or 0.5%, after swinging between gains of nearly 150 points and losses of 400 points. The Nasdaq composite decreased slightly by less than 0.1%.
The US Labor Department reported that August hiring fell short of economists’ expectations, and revised data showed that June and July had overstated job growth by 21,000 positions. The weaker employment figures, following last month’s disappointing report and other soft data, have led traders to betting on a 100% probability that the Fed will cut its main interest rate at its next meeting on September 17.
In commodities, US crude rose 74 cents to $62.61 a barrel, while Brent crude gained 80 cents to $66.30 a barrel.
In currency trading saw the US dollar rise slightly against the Japanese yen, reaching 148.20 yen from 147.39 yen, while the euro fell to $1.1709 from $1.1723.
