Asian Shares Rise as Japan’s Market Surges on Policy Optimism

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Asia

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Image Source:AP Photo/Richard Drew

Asian shares advanced on Monday, led by strong gains in Japan’s benchmark index as investors reacted to signs of policy stability and improving global sentiment.

Japan’s Nikkei 225 jumped nearly 3 %, reaching a record high and reflecting renewed confidence in the country’s economic outlook. The surge followed expectations of continued pro-growth policies and potential fiscal support aimed at boosting investment and domestic demand. Analysts noted that investor optimism was further supported by a weaker yen, which tends to benefit export-driven companies.

Across the region, major markets also recorded modest gains. Hong Kong and Shanghai saw a lift after China’s latest economic data pointed to steady, if uneven, recovery. The country’s third-quarter figures showed industrial output and consumer spending both improving, easing some concerns about slowing momentum in Asia’s largest economy.

Investor sentiment was also strengthened by softer inflation data from the United States, which raised hopes that the Federal Reserve may begin cutting interest rates in the coming months. Lower U.S. borrowing costs would likely support global liquidity and capital flows into Asian markets.

Despite the upbeat tone, analysts cautioned that risks remain. China’s property sector continues to face pressure, and uncertainty over global trade and energy prices could still weigh on growth. Even so, the region’s equity markets appear to be gaining traction after weeks of volatility.

Overall, Monday’s rally highlighted growing optimism that supportive domestic measures in Japan and stabilising economic trends in China could sustain Asia’s recovery, offering a positive start to the week for investors across the region.