Asian Stock Markets Gain Momentum After Japan’s Political Shift

Asian equity markets opened the week strongly, with Nikkei 225 jumping nearly 2.9% after a new Japanese coalition government was announced. Meanwhile, China’s GDP data offered mixed signals.

Key Takeaways

• The Nikkei rose ~2.9% to a record 48,970.40 on optimism about pro stimulus policy moves.

• China’s annual GDP growth clocked in at ~4.8% in the latest quarter.

• Other Asian indices: Hong Kong’s Hang Seng +2.5%; South Korea’s Kospi +1.3%.

Implications & Risks

• Easing trade tensions and expectation of fiscal stimulus in Japan are boosting sentiment across the region.

• But the growth in China remains moderate and property market pressures persist so upside may be limited unless structural reforms accelerate.

• Investors should watch currency moves (JPY-weakness) and domestic policy risks.

Conclusion

The Asian market rally is encouraging, especially following Japan’s political reorganisation but underlying fundamentals remain mixed, so while momentum is favourable, selective positioning is advisable.