On October 3, 2024, Asian shares exhibited a mixed performance as the U.S. dollar strengthened against the yen, which was trading at 146.51. Japan's Nikkei 225 index saw a notable rise of 2%, closing at 38,552.06, following the election of Shigeru Ishiba as the new leader of the Liberal Democratic Party. Ishiba's leadership is seen as a potential stabilizing force for Japan's economy, although he has expressed support for recent interest rate hikes [d7c5e75f].
In contrast, the broader Asian market faced challenges, with Hong Kong's Hang Seng index declining by 1.4% to close at 22,124.37. This drop reflects ongoing concerns regarding regional economic stability, particularly amid rising tensions in the Middle East [d7c5e75f]. Additionally, U.S. crude oil prices increased to $71.10 per barrel, influenced by geopolitical factors [d7c5e75f].
Despite the positive movement in Japan, Wall Street benchmarks ended little changed, with the S&P 500 closing at 5,709.54. Notably, shares of Nike fell by 6.8% despite reporting strong profits, while Tesla shares decreased by 3.5% even with increased deliveries [d7c5e75f].
The Bank of Japan, under Governor Kazuo Ueda, has downplayed the likelihood of further interest rate hikes in the immediate future, which has contributed to a cautious optimism among investors [d7c5e75f]. As the implications of Ishiba's leadership unfold, the interplay between domestic policies and global economic trends will be critical in shaping market dynamics in the upcoming weeks.