Nikkei 225 turned downward, declining by 0.42% to close at 43,459.29 after reaching a record high earlier in the day, in the wake of Prime Minister Shigeru Ishiba’s resignation announcement on Sunday. The Topix declined by 0.51%, settling at 3,122.12. “Investors are anticipating that the upcoming leader from the ruling Liberal Democratic Party may initiate a fresh round of fiscal stimulus to strengthen the economy,” Analyst noted.

Amid expected near-term volatility due to political uncertainties, the forthcoming change is anticipated to foster greater long-term policy and political stability, creating a more favorable pro-growth environment for the equities market. The bank anticipates further gains for the Nikkei 225, projecting it will reach 46,000 within a year. The Japanese yen appreciated by 0.2%, reaching 147.22 versus the US dollar. The performance of the Nikkei 225 over the last year South Korea’s Kospi increased by 1.26%, finishing the trading day at 3,260.05, while the small-cap Kosdaq saw a rise of 0.76%, closing at 824.82.

Australia’s benchmark index experienced a decline of 0.52%, settling at 8,803.5. Hong Kong’s Hang Seng index reduced earlier gains to increase by 1.19% after reaching its highest point since late 2021. The mainland CSI 300 declined by 0.7%, settling at 4,436.26. Indonesia’s Jakarta Composite Index fell by 1.82% following the unexpected dismissal of finance minister Sri Mulyani Indrawati by President Prabowo Subianto late Monday. Purbaya Yudhi Sadewa has taken over, having led the Deposit Insurance Corporation since 2020, and was officially sworn in late Monday. The Indonesian rupiah declined by 1.17%, now standing at 16,490 per dollar. India’s Nifty 50 increased by 0.29%, and the Sensex index saw a rise of 0.2%. The three major averages finished the day higher in the Nikkei Futures. The Nasdaq Composite reached an all-time high as investors prepared for a week filled with significant data, featuring two key reports on inflation. The Nasdaq, known for its focus on technology stocks, closed with a gain of 0.45% at 21,798.70, achieving a new record high following an all-time intraday peak during the session.

The S&P 500 closed with a gain of 0.21% at 6,495.15, and the Dow Jones Industrial Average increased by 114.09 points, or 0.25%, finishing at 45,514.95. The increase was driven by a surge in shares of chipmaker Broadcom, which rose by 3%, and the notable performance of Nvidia, which saw nearly a 1% uptick, recovering some of its significant losses from the previous month. Amazon and Microsoft experienced an increase.