The Asian and Pacific Rim equity and financial were broadly higher on Monday morning as traders digested corporate news sending shares of Softbank higher after Nvidia agreed to purchase Arm Holdings.
Asian traders are also watching political developments out of Japan closely as that nation looks for the successor of outgoing Prime Minister Shinzo Abe who resigned for health reasons.
In Japan the benchmark Nikkei 225 was trading up 0.65 percent and in Tokyo, the broader Topix index saw shares gain 0.84 percent.
In South Korea, the benchmark Kospi composite index added over 1.2 percent by the morning and elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was up nearly half a percent.
In Hong Kong, the Hang Seng index was up over 0.4 percent. On the mainland, in China, the Shanghai composite rose 0.25 percent and the Shenzhen component was up 0.48 percent.
Asian Traders Monitor Japanese Politics on Monday
Traders are watching Japan closely this week. Especially the political situation closely as they continue to search for the successor to outgoing Prime Minister Shinzo Abe.
Mr. Abe resigned earlier in the month due to health reasons. The front runner to replace him as prime ministers is Chief Cabinet Secretary Yoshihide Suga. He is viewed as the candidate to continue Abe’s economic policies.
The ruling Liberal Democratic Party is scheduled to hold elections sometime on Monday to choose their new leader who would then be prime minister.
Shares of Softbank Group Spike Higher on M&A News
Japan’s Softbank Group saw its shares pop 8.92 percent in the morning after news that the company will sell British chipmaker designer Arm to American owned Nvidia.
Nividia will pay $40 billion to buy Arm holdings. Arm makes chips for smartphones. The deal will be a mix of $21.5 billion in Nividia shares and $12 billion in cash. Nvidia will pay $2 billion when the deal is signed.