In Japan, shares fell after the ruling Liberal Democratic Party named former Defence Minister Shigeru Ishiba as the next Prime Minister, following Fumio Kishida.
Representative image
Asian markets were volatile at the start of the week, with Tokyo's Nikkei 225 falling nearly 5 per cent, while Chinese markets soared on news of more economic stimulus. In Japan, shares fell after the ruling Liberal Democratic Party named former Defence Minister Shigeru Ishiba as the next Prime Minister, following Fumio Kishida, reported Associated Press.
ADVERTISEMENT
According to the report, Ishiba has shown support for hiking interest rates and possibly boosting corporation taxes, which are considered less market-friendly than his opponent, Economic Security Minister Sanae Takaichi. At midday Monday, the Nikkei was down 4.7 per cent, trading at 37,956.32.
The currency also rose, falling from nearly 146 yen to less than 143 yen against the US dollar following the leadership decision. The higher yen affected exporters hard, with Toyota Motor Corp. down 3.5 per cent, Honda Motor Co. down 4.1 per cent, and Nissan Motor Co. down 5.8 per cent, the AP report stated.
Meanwhile, Chinese markets rose as the government announced new measures to help the faltering real estate and financial industries. The Hang Seng index in Hong Kong jumped 3.3 per cent, while the Shanghai Composite increased by 5.7 per cent. China's central bank announced intentions to lower mortgage rates by October 31, while the city of Guangzhou eliminated all property buying restrictions, the report added.
Reportedly, in other Asian markets, Australia's S&P/ASX 200 rose 0.7 per cent, while South Korea's Kospi sank 0.9 per cent.
In the United States, the S&P 500 fell 0.1 per cent on Friday, while the Dow Jones Industrial Average increased 0.3 per cent. Inflation figures for August showed a small decrease, raising questions about the Federal Reserve's future rate cuts, the news agency report stated.
In commodities, US crude oil jumped 40 cents to USD 68.58 per barrel, while Brent crude gained 45 cents to USD 71.99 per barrel.
The euro traded marginally lower at USD 1.1158, the AP report stated.
Sensex, Nifty tumble in early trade
Benchmark indices fell in early trade on Monday due to foreign money withdrawals and mainly weak Asian markets, with Japan's Nikkei index down over 5 per cent. Frontline stocks such as ICICI Bank and Reliance Industries also drove the market down. The BSE Sensex fell 464.22 points to 85,107.63 in early trading. The NSE Nifty fell 133.85 points, to 26,045.10, reported PTI.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
