Nikkei 225 index added 1.8% to 39,332.74, the Hang Seng index gained 1.1% to 22,977.97, the Kospi rose 1.3% to 2,602.23, and Taiex added 1.8%
Asian shares rose on Monday after a surprisingly strong U.S. jobs report raised optimism about the country’s economy, triggering a rally on Wall Street.
Nikkei 225 index added 1.8% to 39,332.74 after the yen dipped against the U.S. dollar. The Japanese currency has gained on speculation over the central bank’s plans for interest rates since Prime Minister Shigeru Ishiba took office last week. Lower interest rates tend to boost prices of shares and other asset, and both Ishiba and the central bank governor suggested no hikes were likely soon.
Nintendo advanced 5% following reports that a Saudi wealth fund was planning to increase its investment in the Kyoto-based video game maker.
In a policy speech on Friday, Ishiba said he wants to see salary hikes that outpace inflation and that he will promote investment to create “a virtuous cycle of growth and distribution.” He promised economic support for low-income households and measures for regional revitalization and disaster resilience.
But he offered no major new initiatives, and his initial public support ratings are around 50% or lower, as per Japanese media. He plans to dissolve parliament on Wednesday for an election on October 27.
After rising briefly against the dollar, the yen dropped back late last week. Early Monday, the dollar was trading at 148.45 yen, down from 148.72 late Friday.
In Hong Kong, the Hang Seng index added 1.1% to 22,977.97, and the Kospi in Seoul soared 1.3% to 2,602.23.
Taiwan’s Taiex added 1.8%.
Mainland Chinese markets reopen from a weeklong holiday on Tuesday, and the government said it plans to explain details of plans for economic stimulus at a morning news conference in Beijing. Before the October 1 National Day holiday began, announcements of policies aimed at reviving the ailing property market pushed share benchmarks sharply higher and this week could bring more volatility.
More fiscal stimulus to stabilize the property market and restructure local government debts, and structural reforms to address the over-capacity and deflation issues are needed to turn around the economy, BoA Securities said in a research note, pointing to continued declines in home sales, housing prices and credit growth.
