Asian markets close higher as Nikkei hits new highs on post-election “Takaichi Trade”

Indices

The Nikkei 225 (N225) closed at 57.65K, up 2.28%, setting new record highs as financial and technology sectors drive performance. The Hang Seng Index (HSI) advanced to 27.12K, rising by 1.31% on optimism about China's new consumption-boosting measures. The Shanghai Composite Index (SSEC) reached 3.97K after a nine-session winning streak, indicating persistent bullish sentiment. The KOSPI climbed 1.17% to about 4.04K, extending gains on the back of a tech rally and robust economic data. These movements suggest a widespread risk-on environment, with buy signals particularly strong in financial, technology, and export-oriented sectors.

Stocks

Today’s notable stock performers reflect the prevailing bullish mood. On the Nikkei 225, Sumco surged 4.5%, with Rakuten, Keisei Electric Railway, Mercari Inc., CyberAgent, and Shionogi each gaining between 3% and 4%. However, Toho Zinc dropped by over 10%, and other laggards such as Mitsui Engineering & Shipbuilding, Fujikura, Sumitomo Metal Mining, and Kawasaki posted losses between 2.2% and 2.6%. In Hong Kong, China Life Insurance soared 5.97%, while AIA Group and CSPC Pharma also saw notable gains. Conversely, Hang Lung Properties and Hansoh Pharmaceutical Group declined by 4.51% and 4.37%, respectively. The Shanghai Composite highlighted Ping An Insurance’s 3.7% gain, Foxconn Industrial’s 1.4% advance, and PetroChina’s 0.8% uptick. In South Korea, Samsung Electronics increased 1.79%, LG Energy Solution rose 1.08%, and Doosan Enerbility outperformed with a 3.07% gain. These movements underscore the dominance of technology, financials, and selective industrials in today’s session.

Economic News

The Nikkei 225’s rally is underpinned by expectations of further fiscal stimulus from the Japanese government, signaling potential for continued economic support. The Hang Seng’s gains reflect optimism around China’s latest measures to stimulate domestic consumption, reinforcing positive sentiment among investors. South Korea’s KOSPI is buoyed by better-than-expected economic data, including a 1.3% GDP growth in the third quarter, which marks the fastest expansion since late 2021. Collectively, these developments highlight the role of proactive fiscal and policy actions in sustaining the region’s growth trajectory and investor confidence.

Economic Events

A number of key economic events are poised to influence market direction in the near term. In Japan, investors are awaiting the Cabinet’s approval of the Fiscal 2026 budget, which could further affect sentiment and index performance. China is set to release upcoming inflation and industrial production data, which are anticipated to provide new insights into the strength and sustainability of its economic recovery. South Korea will publish trade balance and manufacturing PMI figures in the coming days, offering additional cues for KOSPI traders. These events are likely to set the tone for the next wave of market activity across Asia.

Market Sentiment

Overall market sentiment across the main Asian indices is strongly bullish, reflecting investor optimism around fiscal stimulus, supportive policy actions, and resilient economic fundamentals. The Nikkei 225’s record highs and the Shanghai Composite’s nine-session winning streak suggest robust conviction in the region’s growth outlook. The Hang Seng and KOSPI are similarly benefiting from sectoral leadership in technology and financials, as well as encouraging macroeconomic data. This positive sentiment is prompting an increased appetite for risk, with potential buy opportunities prevalent in leading sectors.