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Asian Markets Mostly Higher in the Morning

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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. 

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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