Tokyo, RakyatNTT.ID – Asian markets opened the week on a strong note as most major indexes traded higher on Monday.

Investors closely monitored Japan’s political landscape following the election of Sanae Takaichi, the newly appointed leader of Japan’s ruling Liberal Democratic Party (LDP), which is expected to shape the country’s future economic direction.

Japan’s Nikkei and Topix Hit Record Highs

Japan’s Nikkei 225 surged over 4%, reaching a new record high to kick off the week.

Similarly, the Topix index rose more than 3%, also setting a new all-time peak, signaling strong investor confidence in the nation’s market prospects.

Meanwhile, Australia’s S&P/ASX 200 gained 0.19%, and Hong Kong’s Hang Seng index opened slightly higher, with futures trading at 27,153, up from the previous close at 27,140.92.

Markets in China and South Korea remained closed for public holidays.

Political Shift Boosts Investor Sentiment

According to CNBC International, Japanese stocks soared after the LDP selected Sanae Takaichi, a conservative politician, as its new leader.
Takaichi’s appointment marks a historic milestone as she becomes Japan’s first female prime minister.

Analysts at Credit Agricole CIB (CA-CIB) noted that under Takaichi’s leadership, Japan is likely to maintain its high-pressure economic stance, with the Bank of Japan (BOJ) expected to continue its accommodative monetary policy for the time being.

“Given that Japan’s economy remains fragile, the Takaichi administration is expected to adopt a bold policy shift that strengthens investment and demand through public-private partnerships,” wrote CA-CIB in its research note on Monday (October 6).

The report also added that a 25-basis-point rate hike by the BOJ could become possible in January 2026, after Japan’s general election period concludes.

Global Market Overview

Elsewhere, on Wall Street, the three major U.S. indexes closed higher on Friday, ending a volatile week with modest gains despite the ongoing U.S. government shutdown extending into its third day.

  • S&P 500 edged down 0.01% to 6,715.79, but still logged a solid weekly gain.
  • Nasdaq Composite slipped 0.28% to 22,780.51.
  • Dow Jones Industrial Average advanced 0.51%, or 238.56 points, to close at 46,758.28.
  • Russell 2000 added 0.72%, finishing at 2,476.18.

Despite fiscal uncertainty in Washington, investors remained optimistic as corporate earnings and global growth projections continued to support equity markets.

Outlook for Asian Stock Market Today

With Japan leading regional gains, the Asian stock market today is poised for further upside momentum as investors price in policy stability and potential fiscal stimulus from Tokyo.

Market analysts expect the region’s positive sentiment to continue, supported by strong domestic demand and moderate global inflation pressures. (*/rnc)