Nikkei 225, Japan Yen, Ishiba resignation

The Asian-Pacific markets were mostly higher on Monday, investors evaluated the announcement of resignation from Japanese Prime Minister Shigeru Ishiba during the weekend and watched key economic data in the region.

Japan benchmark Nikkei 225 increased by 1.5% following the Prime Minister’s declaration, which occurred after weeks of increasing pressure on his defeat of national elections at the end of last year. The Topix climbed 1% to a record level.

Koizumi Shinjiro, the agricultural minister and the son of a former Prime Minister, is probably a competitor to take the helm, Stefan Agrick, head of Japan and the economic border markets of Moody’s Analytics wrote in a note on Monday. Meanwhile, Takaichi Sanae, protected from the late Prime Minister Abe Shinzo and finalist in the party competition from last year, is also a key competitor.

Richard Kaye, Comgest portfolio director, said that the “very positive response” on the market on Monday was “a little surprise”, but that he “reflects the excitement surrounding Koizumi and Takaichi”.

Kaye stressed that the potential successor Takaichi, who likes deregulation and who does not want interest rate increases, is “probably the growth candidate and she will justify the market rally today”.

The Japanese yen weakened 0.64% to 148.33 against the greenback, while Japanese obligations continued to sell.

The yield of 30 -year bonds in Japan increased on 4 base points to 3.272% after winning a record last Wednesday, after having increased by more than 100 base points this year. The 20 -year debt yield is greater than 3 base points at 2.676%.

The bond yields of the Japanese government have marked new heights while investors prices in persistent inflation, more strict monetary policy, as well as budgetary uncertainty.

“Japan is now ready for a period of prolonged uncertainty before the fourth quarter of 2025,” said BMI analysts, a Fitch Solutions unit. “Although the next LDP chief normally becomes the Prime Minister normally, it is theoretically possible for the opposition to regroup under a rival candidate for the Première.”

South Korea Kospi was 0.15%higher, while Kosdaq with small capitalization jumped 0.47%.

The Hong Kong Hang Seng index increased by 0.48%, while the CSI 300 on the continent was flat.

Australia Benchmark S&P / ASX 200 slipped 0.38%.

China’s commercial data for August will also be ready.

Oil prices have increased after OPEC + announced during the weekend, it will once again increase oil production from October, although the group will slow the pace of hikes. During an online meeting on Sunday, eight OPEC + members agreed to raise the production of 137,000 barrels per day from October, well below the increase of around 555,000 b / d in September and August, and 411,000 b / d in July and June.

Benchmark Global Brent added 0.53% to $ 62.2 a barrel, while the US intermediate term contracts of West Texas negotiated from 0.6% to $ 65.89 per barrel.

US stock contracts were little changed on Sunday while investors are preparing for a heavy week of data that includes two readings closely on inflation. The report of the producer price index for August is expected to be released on Wednesday morning in the United States, followed by the consumer price index on Thursday.

Last Friday in the United States, the three major averages were closed after a lower than expected job report have given way to the concerns of a slowdown saving, even if the expectations of a drop in rate of the federal reserve have been solidified.

The S&P 500 finished down 0.32% to 6,481.50, while the NASDAQ composite decreased by 0.03% to be resolved to 21,700.39. The Dow Jones Industrial Average closed down 220.43 points, or 0.48%, to 45,400.86.

The three main clues had reached new records records earlier in the Friday session. To their summits, the large market index, the NASDAQ and the Bleu-Puce Dow increased by approximately 0.5%, 0.8%and 0.3%respectively.

– Brian Evans of CNBC and Sean Conlon contributed to this report.