Investing.com — Most Asian stocks rose Monday after concerns about the Israel-Iran conflict were soothed by a less serious than feared attack by Israel, while Japanese shares rose despite increased political uncertainty.
Japanese markets were the best performers on Monday as the ruling Liberal Democratic Party lost its parliamentary majority, with investors betting that heightened political uncertainty would reduce the chances of more rate hikes from the Bank of Japan.
Israel attacked Iran over the weekend but avoided hitting Tehran’s oil and nuclear infrastructure, marking a less serious escalation of the long-running conflict. Most Asian markets rose on this idea, while oil prices fell.
Regional markets took middling cues from Friday’s mixed close on Wall Street, with the focus this week shifting entirely to a series of key tech wins and economic data. US stock index futures rose in Asian trading on optimism about the Middle East.
Japanese stocks are rising as political uncertainty quashes interest rate hikes
Japan and the indexes rose 1.5% and 1.2% respectively.
A coalition led by the country’s ruling Liberal Democratic Party lost its parliamentary majority in elections held on Sunday, raising doubts about the country’s political makeup in coming years, local media reports showed .
The LDP will now have to seek alliances with smaller, regional parties, although such a scenario points to a more fractured economic environment in the country.
While such a scenario brings more uncertainty to Japanese markets, it also reduces the BOJ’s ability to keep raising rates. The yen fell sharply on this thought, which helped export-oriented stocks.
The central bank will keep interest rates unchanged, and is widely expected to leave interest rates unchanged.
Asian markets stable with technology revenues, eco. data on tap
Broader Asian markets moved largely higher on Monday, with the focus shifting this week to a barrage of key US tech gains, as well as key economic data.
Five of Wall Street’s ‘Magnificent Seven’ will report this week, providing clues to the broader stock markets.
Australian yields rose 0.1%, ahead of key inflation figures due later this week. South Korea added 0.6% as heavyweight technology stocks waited for more signals on artificial intelligence trading.
Chinese markets lagged behind, with indices moving flat to low. Figures from the country will be released this week, following several stimulus measures outlined by Beijing over the past month.
Hong Kong’s index traded sideways.
Futures for the Indian index pointed to a positive open, with local shares expected to go on a buying spree after steep losses through October. More Indian earnings will also follow in the coming days.
