Asian shares displayed mixed performances, with Japan’s benchmark index faltering after the announcement that the prime minister will not seek re-election as the head of the ruling party.
Japan’s Nikkei 225 slipped by 0.1% to 36,192.93. Meanwhile, Australia’s S&P/ASX 200 rose by 0.5% to 7,869.40, and South Korea’s Kospi increased by 0.7% to 2,640.10.
Hong Kong’s Hang Seng dropped by 0.3% to 17,127.65, and the Shanghai Composite fell by 0.4% to 2,857.90.
Prime Minister Fumio Kishida’s public support has been declining recently due to a scandal involving dubious finances and his general unpopularity, as reported by Japanese media polls.
The ruling Liberal Democratic Party of Japan holds the majority in the lower house of parliament, which elects the country’s leader.
In the US, stocks surged and bond yields fell on Tuesday after data indicated that US producer prices rose less than anticipated in July. This reinforced market expectations that cooling inflation might prompt the Federal Reserve to reduce interest rates soon.
The S&P 500 soared by 1.7% to 5,434, the Dow Jones Industrial Average increased by 1% to 39,766, and the Nasdaq Composite surged by 2.4%, ending at 17,188.
Yields on the benchmark 10-year US Treasury bond decreased to 3.85% from 3.90% late on Monday.
