Rise in Asian Markets! New Prime Minister Expected

Asian Markets on the Rise

BANGKOK (AP) — Asian markets recorded gains on Tuesday. Japan's benchmark index is nearing the 50,000 level, preparing to surpass a historic milestone. This is happening under the influence of Sanae Takaichi, who is on track to become Japan's first female prime minister.

Nikkei 225 reached 49,595.72 in Tokyo, up by %0.8. Takaichi is expected to support market-friendly policies like low-interest rates and increased public spending, although the coalition government holds a weak majority in parliament.

The American dollar rose from 150.75 yen to 151.05 yen. Takaichi's plans to slow interest rate hikes by the Bank of Japan may cause the yen to remain weak against the dollar. This situation complicates controlling inflation, which is above the 2% target.

Global Developments and Economic Data

Hong Kong's Hang Seng index climbed by %1.7 to 26,286.47. The Shanghai Composite Index also increased by %1.2 to 3,910.13. Furthermore, U.S. President Donald Trump is expected to meet with Chinese President Xi Jinping later this month, raising hopes for a reduction in trade tensions between the two major economies.

In South Korea, the Kospi rose by %0.5 to 3,833.43. Australia's S&P/ASX 200 index increased by %0.8 to 9,099.30. Taiwan's Taiex index also saw a %0.3 rise.

U.S. Markets Climbing

U.S. stocks approached historic records on Monday. S&P 500 increased by %1.1 to 6,735.13, Dow Jones Industrial Average climbed %1.1 to 46,706.58, and Nasdaq rose %1.4 to 22,990.54. Apple saw an increase of %3.9, breaking its own record due to positive expectations regarding the demand for its new iPhone design.

Cleveland-Cliffs experienced a %21.5 rise after its CEO, Lourenco Goncalves, indicated that he would soon announce important details about potential profit increases. The company's prospects for rare earths in Michigan and Minnesota also drew attention.

Companies' Earnings Reports Gaining Importance

During the week, major companies such as Coca-Cola (Tuesday), Tesla (Wednesday), and Procter & Gamble (Friday) will release their quarterly reports. Investors are concerned that companies are under pressure to increase profits after the S&P 500 has risen %35 since April.

In addition, the government shutdown in the U.S. has delayed significant economic updates, making corporate earnings reports an important indicator of the economy's strength. The Federal Reserve is caught between high inflation and a weakening labor market. Although it is expected to cut interest rates, this could further increase inflation.

On Friday, inflation data for September will be released. This report will contain the data needed by the Social Security Administration to determine living standards.

Developments in Oil and Euro Markets

On Tuesday, U.S. crude oil fell to $56.90, while Brent crude decreased to $60.88. The euro dropped to $1.1635.