Asian markets experienced a rollercoaster start to the week, with Tokyo’s Nikkei 225 index dropping nearly 5% while Chinese markets saw a surge due to fresh stimulus measures for the struggling economy.
Japanese shares fell after the ruling Liberal Democrats selected former Defense Minister Shigeru Ishiba as the successor to Prime Minister Fumio Kishida. This decision led to a 4.8% decrease in the Nikkei index.
Ishiba’s support for policies like raising interest rates and possibly corporate taxes caused uncertainty among investors, contributing to the decline in exporter stocks such as Toyota, Honda, and Nissan.
On the other hand, Hong Kong’s Hang Seng index rose by 3.3%, and the Shanghai Composite index surged by 6.8%, supported by stimulus efforts and the lifting of home purchase restrictions in China.
Meanwhile, in the U.S., the Federal Reserve’s focus on easing inflation and interest rates impacted market sentiment. Despite concerns of a potential downturn, benchmark oil prices and the euro remained relatively stable.
This complex market landscape reflects global economic challenges and the ongoing efforts of policymakers to navigate through uncertain times.
