Investing.com– Most Asian stock markets rose sharply on Monday following Wall Street’s tech-led rebound late last week, while Japanese shares surged to record highs after Prime Minister Sanae Takaichi’s ruling coalition secured a decisive victory in a lower-house vote.
Risk appetite improved across the region after U.S. stock indexes rebounded strongly on Friday, recovering part of the steep losses earlier in the week over artificial intelligence disruption worries.
U.S. stock index futures also gained modestly during Asian hours on Monday.
Nikkei surpasses 57,000 after Takaichi election win
Japan’s surged as much as 5.6% to a fresh record high of 57,337.07, buoyed by political clarity after Takaichi’s ruling coalition secured an overwhelming majority in Sunday’s lower-house election.
The broader index jumped 3.4% to a record peak of 3,825.67 points.
“The coalition’s win will give Takaichi more freedom in policy decisions and strengthen her ability to pursue economic and foreign policy goals,” ING analysts said in a note.
Markets expect Takaichi’s government to roll out increased public spending, tax incentives, and measures to boost wages and corporate investment, alongside continued support for strategic sectors such as technology, defense, and energy.
“Today’s election results will likely boost local equities but weigh on Japanese government bonds and the yen,” ING analysts added.
Asia tech stocks rally; surges ~5%
Gains in U.S. chipmakers and other AI-related shares helped lift sentiment in Asian markets at the start of the week.
South Korea’s KOSPI jumped nearly 5% after suffering sharp declines over the previous two trading days.
shares climbed over 5% after a report said the chipmaker will begin mass production of its next-generation HBM4 memory chips later this month.
Rival shares also jumped over 5%.
Elsewhere in Asia, Hong Kong’s Hang Seng rose 2% with the subindex gaining 1.5%.
In mainland China, the blue chip and the advanced 1.3% each.
Australia’s S&P/ASX 200 index climed 2%, while Singapore’s Straits Times Index gained 1%.
Futures tied to India’s edged 0.1% higher, with investors assessing the details on the U.S.-India trade framework.
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.
While Wall Street’s rebound has provided a bounce, market participants remain cautious after wild swings last week tied to technology stocks and shifting expectations around AI.