During Monday's Asian trading session, most regional stock markets rose. After a noticeable rebound in U.S. stocks driven by technology stocks last Friday, regional risk appetite has warmed up; simultaneously, the conclusive outcome of the Japanese election further boosted the "policy certainty trade" of Japanese stocks.
Japanese Stock Market Leads: Election Outcome Clarified, Nikkei and TOPIX Hit New Highs
The Japanese market became the frontrunner of the day. The Nikkei 225 surged over 5% intraday, surpassing the 57,000-point mark for the first time to reach a record high; the broader TOPIX also strengthened, hitting record levels. The general interpretation is that after the ruling coalition won an overwhelming majority, Prime Minister Sanae Takaichi has gained more space to advance economic and diplomatic agendas, fueling expectations of fiscal stimulus and industrial policy.
Technology and Chip Recovery: South Korea's KOSPI Surges, Samsung and SK Hynix Strengthen
The rebound in the technology chain has also "transmitted" across Asia. South Korea's KOSPI jumped after a series of retracements, with semiconductor heavyweights leading the way: reports indicate that Samsung plans to advance the mass production of the next-generation HBM4 later this month, driving the stock prices of Samsung Electronics and SK Hynix higher.
China, Hong Kong, and Other Markets Follow Suit: CSI 300, Hang Seng, Australia, and Singapore Rise Broadly
Besides Japan and South Korea, both the Hong Kong and Chinese A-shares maintained a strong pace: the Hang Seng Index and Hang Seng Tech Index rose, as did the CSI 300 and the Shanghai Composite Index; Australia's S&P/ASX 200 and Singapore's Straits Times Index also moved higher in tandem. In India, Nifty 50 index futures edged up, while the market evaluated further details of the U.S.-India trade framework.
Focus Ahead: U.S. "Delayed Release" Employment and Inflation Data to Reprice Rate Expectations
Despite the improved sentiment, the market remains cautious: previous intense debates around AI commercialization and valuations triggered significant volatility, and there is skepticism about whether the rally can be sustained. Going forward, investors will focus on the upcoming U.S. key macroeconomic data—employment and inflation reports, which have seen scheduling adjustments—to assess the Federal Reserve's rate path and global growth outlook.
