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Asian stocks advance as Nikkei 225 hits new record high

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Asian stocks advance as Nikkei 225 hits new record high

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New update 2025.10.07 15:01
Asian stocks advance as Nikkei 225 hits new record high

update 2025.10.07 15:01

Asian equities trades mostly higher on Tuesday in quiet holiday trading, while the Nikkei 225, Japan's benchmark, rose to a fresh record high on hope for more government spending and lower taxes under Japan's first woman prime minister.

The Nikkei 225 rose 0.28% to 48,078. The surprise election of Sanae Takaichi, who is expected to become the Prime Minister of Japan this month, has raised hopes that she will embark on a campaign on monetary easing.

"Takaichi's victory removes uncertainty about the country's policy direction", said Saxo Markets' Charu Chanana. "Her agenda is expected to continue a blend of fiscal support and ultra-easy monetary policy," added Chanana.

Meanwhile, China and Hong Kong stock markets closed on Tuesday. India's Nifty50 was up 0.33% to trade at 25,160 early Tuesday. In Taiwan, the Taiex jumped nearly 2.0%. Other markets in Southeast Asia were higher. Australia's S&P/ASX 200 lost 0.27% to 8,956.80.

AsianStocks FAQs

Asia contributes around 70% of global economic growth and hosts several key stock market indices. Among the region's developed economies, the Japanese Nikkei - which represents 225 companies on the Tokyo stock exchange - and the South Korean Kospi stand out. China has three important indices: the Hong Kong Hang Seng, the Shanghai Composite and the Shenzhen Composite. As a big emerging economy, Indian equities are also catching the attention of investors, who increasingly invest in companies in the Sensex and Nifty indices.

Asia's main economies are different, and each has specific sectors to pay attention to. Technology companies dominate in indices in Japan, South Korea, and increasingly, China. Financial services are leading stock markets such as Hong Kong or Singapore, considered key hubs for the sector. Manufacturing is also big in China and Japan, with a strong focus on automobile production or electronics. The growing middle class in countries like China and India is also giving more and more prominence to companies focused on retail and e-commerce.

Many different factors drive Asian stock market indices, but the main factor behind their performance is the aggregate results of the component companies revealed in their quarterly and annual earnings reports. The economic fundamentals of each country, as well as their central bank decisions or their government's fiscal policies, are also important factors. More broadly, political stability, technological progress or the rule of law can also impact equity markets. The performance of US equity indices is also a factor as, more often than not, Asian markets take the lead from Wall Street stocks overnight. Finally, the broader risk sentiment in markets also plays a role as equities are considered a risky investment compared to other investment options such as fixed-income securities.

Investing in equities is risky by itself, but investing in Asian stocks comes along with region-specific risks to be taken into account. Asian countries have a wide range of political systems, from full democracies to dictatorships, so their political stability, transparency, rule of law or corporate governance requirements may diverge considerably. Geopolitical events such as trade disputes or territorial conflicts can lead to volatility in stock markets, as can natural disasters. Moreover, currency fluctuations can also have an impact on the valuation of Asian stock markets. This is particularly true in export-oriented economies, which tend to suffer from a stronger currency and benefit from a weaker one as their products become cheaper abroad.


Date

Created

 : 2025.10.07

Update

Last updated

 : 2025.10.07

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