Investing.com– Asian stock markets extended tech-led gains on Tuesday, while Japanese shares outperformed, surging to fresh record highs as investors cheered the so-called “Takaichi trade” following Prime Minister Sanae Takaichi’s election victory.
Regional sentiment was underpinned by an overnight rise on Wall Street, where U.S. stocks ended modestly higher. The Nasdaq rose more than its peers, lifted by the recent rebound in technology and AI-related stocks.
U.S. stock index futures traded largely unchanged during Asian hours.
Nikkei soars to new peak, nears 58k after Takaichi win
Japan’s index climbed as much as 3% to a new all-time high of 57,960 points, while the broader jumped 22% to record levels of 3,863.90.
Nikkei jumped nearly 4% on Monday, and TOPIX added 2.3%.
The rally reflected strong investor optimism around Prime Minister Takaichi’s policy agenda, which markets view as supportive of growth, corporate profitability, and domestic investment.
Takaichi secured a decisive election win over the weekend, strengthening expectations that her administration will push ahead with pro-business reforms, fiscal support, and measures aimed at boosting capital investment, innovation, and strategic industries.
“The landslide victory will reinforce her responsible but expansionary fiscal spending and a more Japan-focused foreign policy,” ING analysts said in a recent note.
“Risk-on sentiment will dominate the market for now,” they added.
Asian tech stocks extend gains
Technology stocks across the region extended recent advances after concerns over artificial intelligence disruption and valuations triggered a sharp sell-off in global tech shares last week.
South Korea’s rose 0.5% after jumping over 4% in the previous session.
Hong Kong’s also gained 0.5%, with the subindex gaining 1%.
In mainland China, the blue-chip Shanghai Shenzhen and the traded flat.
Australia’s S&P/ASX 200 index edged up 0.2%, while Singapore’s Straits Times Index fell 0.3%.
Futures tied to India’s were muted.
Asian investors are also looking ahead to key U.S. economic data later this week, including delayed jobs and inflation reports, for further clues on the outlook for interest rates and global growth.