Asian markets opened mixed on Monday, with Japan’s Nikkei 225 soaring after a major political change, while Indian and Australian investors took a more cautious start to the week amid global uncertainty and regional holidays.
Japan rallies on new leadership
The Nikkei 225 index climbed more than 4 per cent in early trading, reaching a new record high after the ruling Liberal Democratic Party elected Sanae Takaichi as its new leader. Investors reacted positively to expectations of expanded fiscal stimulus and a stable policy direction under Takaichi’s leadership.
The yen weakened as markets anticipated that the incoming administration might pursue growth-oriented spending, further boosting export-heavy sectors. With several major Asian exchanges closed for holidays — including China, South Korea and Taiwan — Japan’s rally became the defining feature of the regional session.
Cautious tone in India
Indian equities began the week with modest gains. The Nifty 50 crossed 24,900, and the BSE Sensex advanced by more than 200 points in early trade. However, analysts described the session as subdued, citing stretched valuations and limited catalysts for further upside without stronger international momentum.
Market observers warned that early October could bring heightened volatility as global data releases and local earnings reports begin to shape investor sentiment. Domestic sectors such as banking and energy showed selective strength, while technology stocks traded flat.
Australia opens steady amid global caution
Australian shares were slightly higher, with the S&P/ASX 200 edging up about 0.2 per cent in early trading. Strength in resource and energy companies balanced mild losses in financials. Investors in Sydney remained cautious, focusing on commodity price movements and interest-rate expectations.
Overall, sentiment across Asia was shaped by Japan’s political transition, upcoming U.S. economic data, and a generally subdued risk appetite. With several regional markets still closed, Monday’s trading underscored Japan’s growing influence on Asian market momentum at the start of the fourth quarter.
Newshub Editorial in Asia – 6 October 2025
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