Asia Stocks Rise on China Data, Trade Talks; Nikkei Hits Record Highs on Takaichi Bet
Asian stocks traded higher on Monday, driven by a mix of political optimism in Japan and encouraging economic data from China. Japanese shares soared to a new record as investors bet on Sanae Takaichi securing the premiership, anticipating her adoption of ‘fiscal dove’ policies.
**Investor Sentiment in Japan**
Expectations of Sanae Takaichi becoming prime minister have propelled Japanese stocks to record highs. Alongside this, the yen weakened, reflecting market confidence in her potential fiscal policies that may favor increased government spending and a more accommodative approach to economic stimulus.
**Easing Trade Tensions Boost Asia Markets**
Trade tensions appear to be easing, as highlighted by President Trump’s moderated stance on tariffs and the prospect of upcoming trade talks. These developments have buoyed stock indexes across Asia and lifted several local currencies, contributing to the overall positive market sentiment.
**China’s Economic Indicators Show Mixed Signals**
While China experienced slower year-on-year GDP growth, strong quarterly growth and robust industrial output supported optimism for Chinese stocks. However, stable monetary policy combined with tight export controls presents both opportunities and risks for investors navigating the market.
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