TOKYO — Global stock markets displayed a mixed performance on Wednesday, with Japan’s benchmark initially rising before concerns arose following the announcement that the prime minister will not seek reelection as the head of the ruling party.
In Europe, France’s CAC 40 index gained 0.7% to reach 7,324.59, while Germany’s DAX increased by 0.4% to 17,888.68. Britain’s FTSE 100 saw a 0.6% rise, reaching 8,280.28. Meanwhile, U.S. futures indicated a slight upward trend with the Dow futures advancing 0.1% to 39,927.00, while S&P 500 futures remained nearly unchanged at 5,458.50.
Japan’s Nikkei 225 index concluded the day with a 0.6% increase, finishing at 36,442.43, after experiencing volatility. Australia’s S&P/ASX 200 saw a 0.3% gain to 7,850.70, and South Korea’s Kospi rose nearly 0.9% to 2,644.50. In contrast, Hong Kong’s Hang Seng declined by about 0.4% to 17,113.36, while the Shanghai Composite fell 0.6% to 2,850.66.
The ruling Liberal Democratic Party in Japan holds a majority in the lower house of parliament responsible for selecting the nation’s leader. Prime Minister Fumio Kishida’s popularity has waned due to ongoing issues, including a scandal related to political fundraising.
“We must demonstrate that the Liberal Democratic Party is willing to change. This will be the first step in making that clear,” Kishida expressed regarding his decision.
Speculation is growing that the party may opt for a younger leader, with discussions surrounding Shinjiro Koizumi, the son of former Prime Minister Junichiro Koizumi. Koizumi is in his 40s, suggesting a shift from the trend of older prime ministers.
The upward momentum on Wall Street has also contributed to investor optimism.
A cautious tone persists across global markets amid uncertainties regarding the U.S. economy. Upcoming data from Japan is expected to reveal machinery orders, trade statistics, international traveler counts, unemployment rates, and consumer prices. Analysts suggest that Japan’s economy is fundamentally strong, supported by solid corporate performances.
Recent rallies in U.S. stocks marked one of the best trading days of the year, spurred by initial economic reports exceeding expectations.
Inflation in the U.S., a long-standing concern, seems to be decelerating, potentially leading the Federal Reserve to ease its stance on high interest rates.
Market participants are also keenly awaiting U.S. government inflation data set to be released later today, as well as a report on retail spending expected on Thursday.
While the U.S. economy shows signs of growth, concerns linger regarding a slowdown in hiring last month, raising questions about its resilience.
In energy trading, benchmark U.S. crude rose by 53 cents to $78.88 a barrel, while Brent crude, the international standard, gained 51 cents to $81.20 a barrel.
In currency markets, the U.S. dollar increased to 147.17 yen from 146.84 yen, and the euro rose to $1.1017, up from $1.0995.
