Asian Shares Mixed as Japanese Politics Stir Uncertainty

Japanese prime minister's decision not to seek re-election impacts stocks
By Newser.AI Read our AI policy
Posted Aug 14, 2024 6:50 AM CDT
Asian Shares Mixed as Japanese Politics Stir Uncertainty
A person walks in front of an electronic stock board showing Japan's Nikkei 225 index in Tokyo, on Aug. 2, 2024.   (Kyodo News via AP, File)

Asian markets showed mixed reactions Wednesday amid significant political and economic developments. Japan's Nikkei 225 dipped slightly by 0.1% to 36,192.93 in morning trading, despite initially rising on news that Prime Minister Fumio Kishida will not seek re-election for the ruling party. This move comes as Kishida faces public backlash due to corruption scandals and waning popularity. Investors speculate that the Liberal Democratic Party might opt for a younger candidate like Shinjiro Koizumi, the 40-something son of former Prime Minister Junichiro Koizumi, potentially steering leadership away from older politicians.

Meanwhile, Australia's S&P/ASX 200 climbed 0.5% to 7,869.40, and South Korea's Kospi gained 0.7% to 2,640.10. Conversely, Hong Kong's Hang Seng slipped 0.3% to 17,127.65, and the Shanghai Composite fell 0.4% to 2,857.90. Furthermore, optimism grew among investors following an overnight surge on Wall Street, where the S&P 500 rose 1.7%, the Dow Jones Industrial Average added 408 points, and the Nasdaq composite increased by 2.3%. This rally was driven by better-than-expected inflation reports, giving hope that the US Federal Reserve may reduce interest rates soon.

In energy markets, US crude prices increased by 50 cents to $78.85 per barrel, while Brent crude saw a rise of 44 cents to $81.13 per barrel. On the currency front, the US dollar edged down to 146.82 yen, and the euro remained stable at $1.0994. Upcoming economic data out of Japan, including machinery orders and trade statistics, will be scrutinized next week. (This story was generated by Newser's AI chatbot. Source: the AP)

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