Asian stocks advanced on Wednesday, lifted by Wall Street’s record highs and optimism around potential policy shifts in Japan after Prime Minister Shigeru Ishiba’s resignation. Investors also weighed fresh inflation data from China, which highlighted persistent deflationary pressures in the world’s second-largest economy.
Japan’s Nikkei 225 gained 0.5%, hovering near a record 44,185.7 points hit on Tuesday, while the broader TOPIX rose 0.4%. Ishiba’s resignation following heavy election losses has fueled speculation that his successor could adopt more expansionary fiscal and monetary policies. Sentiment was further boosted by confirmation of a U.S.-Japan trade deal set to reduce tariffs on auto exports by mid-September.
In Hong Kong, the Hang Seng index surged 1.2% to a four-year high, supported by a 2% jump in the Hang Seng TECH index, tracking strength in the Nasdaq’s latest record close. South Korea’s KOSPI climbed 1.5%, led by strong gains in chipmakers Samsung Electronics and SK Hynix, which rose 1.5% and 5% respectively. Singapore’s Straits Times Index also gained over 1%.
However, China’s economic outlook weighed on mainland stocks. Data showed consumer prices fell more than expected in August, while producer prices dropped for the 35th straight month, reflecting deep-rooted deflationary pressures despite government stimulus. The Shanghai Composite slipped 0.1%, and the CSI 300 fell 0.2%.
Elsewhere in the region, Australia’s S&P/ASX 200 edged 0.2% higher, while India’s Nifty 50 futures rose 0.4%, signaling modest gains at the open.
Overall, Asian markets mirrored Wall Street’s bullish tone, with investors eyeing a possible Federal Reserve rate cut next week as a key driver for global equities.


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