SINGAPORE / TOKYO,— Asian stock markets rallied sharply on Monday, led by a strong performance in Japanese equities and a rebound in global chip stocks, as investor sentiment improved following political clarity in Japan and expectations of future monetary stimulus.
Japan’s Nikkei 225 index climbed about 4.4 % to record highs, driven by optimism after Sanae Takaichi’s ruling coalition secured a decisive parliamentary majority that markets expect will pave the way for fiscal stimulus and structural reforms.
The rally in Japanese stocks helped lift the broader region: MSCI’s Asia-Pacific index outside Japan rose about 2.2 %, while South Korea’s tech-heavy KOSPI also posted significant gains. Chinese blue-chip shares advanced about 1.3 % ahead of key inflation data due later this week.
Tech and semiconductor stocks contributed strongly to the uptrend as U.S. chipmakers, including NVIDIA, Advanced Micro Devices and Broadcom, bounced back with double-digit percentage gains on Wall Street last Friday, boosting regional investor confidence.
Market sentiment was further supported by renewed expectations that the Federal Reserve may begin cutting interest rates by June, based on forecasts of upcoming economic data on jobs, inflation and consumer spending.
Investors also engaged in bargain hunting in beaten-down sectors including silver, while broader risk appetite rose as concerns eased over previous market volatility. However, some analysts cautioned that maintaining the rally will depend on geopolitical developments and upcoming economic indicators.
Originally Published By: CBN and Reuters
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