Japan Stocks Rise on Tech Gains Amid Political Resignations

Tokyo stocks have shown mixed performance amid political uncertainty and global market influences. After a dip due to Prime Minister Shigeru Ishiba's key ally announcing his resignation, which weakened the yen and cast doubts on Ishiba’s position, the Nikkei 225 futures fell but later recovered slightly. The political instability within Japan's ruling Liberal Democratic Party, with multiple senior members preparing to step down and potential early party elections, has increased market volatility, particularly affecting the yen. Despite these near-term pressures and concerns about US-China trade tensions impacting tech stocks, there is potential for equities to benefit if fiscal policies become more aggressive under Ishiba. Recently, Tokyo stocks rebounded as investors sought bargains following a three-week low, helped by semiconductor shares and export-oriented auto stocks benefiting from yen weakness. The dollar has strengthened against the yen, reflecting the risk-off sentiment and influencing export profits positively.