Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
Updates Japan milestones, adds India open
Investing.com-- Japanese stocks led gains across Asian markets on Monday, with the Nikkei skyrocketing to record highs after fiscal dove Sanae Takichi’s weekend election win fueled bets on more fiscal spending and stimulus from the government.
A sharp fall in the yen also buoyed Japanese markets. Outside Japan, Asian stocks were mostly languid as market holidays in China and South Korea kept trading volumes low. Hong Kong shares fell on a pullback in technology.
Regional markets took some positive cues from Wall Street, which clocked strong gains last week as investors largely brushed off concerns over the impact of a government shutdown. S&P 500 Futures rose 0.2% in Asian trade on Monday.
Focus is now on when the U.S. government shutdown will end, with a slew of U.S. economic readings having been delayed by the shutdown.
Nikkei soars over 4% to record high on Takaichi win
The Nikkei 225 rallied 4.5% to a record high of 48,004.0 points on Monday, while the broader TOPIX index rose 3% to a record high of 3,232.12 points.
Industrials were the best performers on the Nikkei, amid bets that Takaichi will push for more fiscal spending on industrialization and defense. Financials lagged on bets of slower interest rate hikes.
Takaichi won leadership of the LDP in a run-off election held over the weekend, and is now poised to become Japan’s first female prime minister. A parliamentary session on the matter is set to convene in mid-October.
Takaichi was viewed as the most dovish among the five front-runners for LDP leadership.
She has called for more fiscal spending and tax relief to prop up what she sees as a fragile Japanese economy, and is widely expected to discourage the Bank of Japan from raising interest rates further.
This notion was a major driver of Monday’s rally, as markets bet on more accommodative and expansionary policies under Takaichi’s prime ministership.
The yen weakened sharply against the dollar on Monday, further benefiting the heavyweight export sector.
Hong Kong retreats on tech pullback, Asian stocks subdued
Broader Asian markets kept to a tight range after logging some gains last week. Hong Kong’s Hang Seng index was the worst performer in the region, losing 0.5% on a pullback in tech shares.
Tech was a major driver of Asian stock gains last week, amid persistent cheer over artificial intelligence-driven demand. Chipmakers were the key beneficiary of this trade, especially after OpenAI signed partnerships with major South Korean memory chip makers Samsung and SK Hynix.
Bets on more U.S. interest rate cuts in the coming days also boosted tech.
Among broader Asian markets, Singapore’s Straits Times index rose 0.1%, while Australia’s ASX 200 was flat.
India’s Nifty 50 index opened 0.2% higher, coming back in sight of 25,000 points after tumbling from the levels on mounting concerns over the Indian economy, especially in the face of increased U.S. trade tariffs.