Asia Markets: Nikkei continues to surge, leading Asian market gains

Equity markets in Asia were broadly higher to start the week, with Japan’s benchmark index leading gains thanks to a weaker yen, as global risk appetite continued to improve.

The Nikkei Stock Average

NIK, +0.63%

  was up 0.8% — on track to close at another 21-year high — helped in part by the U.S. dollar’s

JPYUSD, -0.168732%

  0.2% gain against the yen in morning trade, which lifted export and finance stocks. Local equities were also being supported by expectations Prime Minister Shinzo Abe’s government will comfortably win elections on Sunday.

Among major gainers in Japan, SoftBank

9984, +1.81%

  rose 2.3%, Nomura

8604, +1.74%

  added 2% and Sony

6758, +1.43%

  was up 1.5%.

“Markets have been risk-on as equities powering to fresh highs helped by the more conciliatory tone in Spanish politics, the more dovish (Federal Reserve meeting) minutes and a softer U.S. CPI,” said Guy Stear, head of emerging markets and credit research at Société Générale.

In Australia, the S&P/ASX 200

XJO, +0.58%

  was up 0.5% in early trade at 5,845, and was around 150 points shy of a nine-year high, even though the index was up just slightly year-to-date. Energy and mining shares were among the biggest gainers, driven by the U.S. dollar’s broad strength. The Australian dollar was last down 0.2% versus the greenback.

Among heavyweight commodities stocks, miners Rio Tinto

RIO, +3.06%

  and BHP Billiton

BHP, +2.20%

 were up 2.9% and 2%, respectively, while the energy subindex rose 1%.

Elsewhere in the region, Hong Kong’s Hang Seng Index

HSI, +1.08%

  gained 0.7%, while Singapore’s Straits Times Index

STI, +0.39%

  was up 0.2% and South Korea’s Kospi

SEU, +0.21%

  rose 0.1%.

Investors will likely keep their focus this week on a key meeting of China’s political elite, the results of which could weigh on the region’s markets. The country’s 19th Communist Party Congress kicks off on Wednesday, and could introduce significant economic and political changes.

In China, the Shanghai Composite Index

SHCOMP, +0.12%

  was flat, as trading remained sideways ahead of the party congress.

Bucking the region’s gains, New Zealand’s NZX50

NZ50GR, +0.04%

  was down 0.2%, as uncertainty carried on around the formation of a new government following national elections. Still, the benchmark index closed each of the past nine trading sessions at a record high.

In commodities, oil prices were higher in Asian trade, buoyed by fresh geopolitical concerns following comments from U.S. President Donald Trump on the Iran nuclear deal, as well as tensions involving the Kurds in Iraq. Brent, the global crude benchmark, up 1.1%, while Nymex futures added 0.8%.