Asian Markets Surge on Takaichi’s Victory Fueling Economic Optimism

Asian markets soared following Japanese Prime Minister Sanae Takaichi's win, which spurred expectations for fiscal policies. Investors welcomed a rebound in U.S. chip stocks and anticipated U.S. Federal Reserve rate cuts. Japan's Nikkei hit record highs, while global indices rose on hopes of economic stimulus and political stability.

Asian markets experienced a significant surge on Monday, driven by Japanese Prime Minister Sanae Takaichi's resounding victory, which heightened expectations for more fiscal policies. This optimism was further buoyed by a rebound in U.S. chip stocks, contributing to a positive sentiment across global investors.

The rally saw Japan's Nikkei index climbing 4.4% to reach all-time highs, as confidence in Japan's political stability and upcoming governmental spending bolstered investor interest. South Korea's tech-focused index increased by 4.3%, and broader Asia-Pacific shares outside Japan rose 2.2%.

Meanwhile, U.S. futures markets also reflected gains, with S&P 500 and Nasdaq futures both rising after a recent period of losses. Despite concerns over the substantial investments in AI and which companies may profit, the markets appeared optimistic about future opportunities in global markets.

(With inputs from agencies.)