Japan’s benchmark Nikkei 225 experienced a reduction in gains on Tuesday, retreating from record highs, following the election of hardline conservative Sanae Takaichi as the first woman prime minister in Japan’s history. According to public broadcaster, she secured 237 votes, thereby obtaining the majority in the 465-seat chamber. The Nikkei 225 index concluded the trading session with an increase of 0.27%, reaching a level of 49,316.06. The Topix moderated its gains to close almost unchanged at 3,249.5, following a peak earlier in the session.

Meanwhile, South Korea’s Kospi index concluded the day at 3,823.84, reflecting a 0.24% increase after achieving a sixth consecutive record high. This upward trajectory is underpinned by optimism surrounding a forthcoming trade agreement with the U.S. South Korean stocks have experienced significant momentum following U.S. Treasury Secretary Scott Bessent’s interview, during which he indicated that Washington was “about to finish up” trade negotiations with the Asian nation. “The devil’s in the details, but we are ironing out the details,” he stated. The Kospi index has experienced an increase of approximately 61% year to date. Automotive equities contributed to the index’s increase, as Hyundai Motor’s shares rose by 3.43%, and Kia Corp experienced a gain of 1.14%. Samsung Electronics, a heavyweight in the market, concluded the session with a decline of 0.61%, despite having experienced an earlier increase of 1.73% during the trading day.

Australia’s ASX/S&P 200 experienced an increase of 0.7%, concluding the trading session at 9,094.7. Shares of the country’s rare earth companies concluded the day with a decline, following an earlier uptick during the session, after Prime Minister Anthony Albanese and U.S. President Donald Trump finalized a critical minerals agreement on Monday in the United States, designed to mitigate China’s dominance. Lynas Rare Earths concluded the trading session with a decline of 7.56%, while Iluka Resources experienced a slight decrease of 0.13%. However, Pilbara Minerals increased by 2.55%, VHM surged over 20%, while Northern Minerals experienced a rise of 1.85%. Hong Kong’s Hang Seng Index increased by 0.76% to reach 26,055, while mainland China’s CSI 300 experienced a rise of 1.53%, reaching 4,607.87. Shares of CATL listed in Hong Kong experienced an increase of 3.31% following the release of robust third-quarter earnings late Monday. The net profit of the Tesla battery supplier for the July-September period increased by 41%, reaching 18.5 billion yuan. The Indian markets are currently closed in observance of a holiday.

U.S. equity futures exhibited minimal movement during the early hours in Asia, as the market anticipates a week filled with earnings reports from prominent corporations and forthcoming inflation statistics. Overnight, the three key benchmarks in the U.S. experienced an uptick, driven by a rally in Apple shares following an upgrade by Loop Capital from hold to buy. The Dow Jones Industrial Average concluded the trading session with an increase of 515.97 points, representing a rise of 1.12%, finishing at 46,706.58. The S&P 500 experienced an increase of 1.07%, concluding at 6,735.13, whereas the Nasdaq Composite rose by 1.37%, finishing at 22,990.54.