Hong Kong and Shanghai jumped more than 1 per cent, while Singapore, Sydney, Seoul, Taipei, Manila, Bangkok and Jakarta were also well in positive territory, along with London and Frankfurt. Paris was flat.
Tokyo’s early surge was pared by the Nikkei 225 ending at a new high, following Monday’s 3.4 per cent surge, as Japan’s first woman prime minister was appointed, after Sanae Takaichi reached a deal to form a new coalition.
The agreement eased worries about political strife in the country after the Komeito party withdrew from its long-standing alliance with Takaichi’s Liberal Democratic Party soon after her election.
Markets have been cheered by the prospect of her premiership as she has in the past backed aggressive monetary easing and expanded government spending, echoing her mentor, former premier Shinzo Abe.
“Markets are focused on the fiscal deficit impact of the budget; excessive measures could trigger a Japan sell-off, while insufficient measures may unwind the Takaichi trade,” said Masamichi Adachi at UBS.
Traders are also keeping tabs on Beijing, where China’s leaders are holding a four-day conclave expected to discuss strategies to address sluggish household spending and persisting woes in the vast property sector.
The gathering comes after data on Monday showed growth in the world’s number two economy came as expected for the third quarter, but was the slowest in a year.
Mineral producers fell in Sydney, having opened sharply higher following a deal between Trump and Australian Prime Minister Anthony Albanese to ramp up shipments of rare earths to the US.
Hastings Technology Metals, Lynas Rare Earths and Iluka Resources all surged at the open but gave up their gains as the day wore on and ended in the red.
AloJapan.com