Japan Nikkei Hits Record High on Government Spending, AI Chip Deals Boost Asia Markets

Asian stock markets traded mostly higher on Tuesday, led by Japan's Nikkei 225 reaching new record highs for the second consecutive session amid strong investor optimism. This surge was driven by the election of Sanae Takaichi as Japan's first female prime minister, who is expected to pursue fiscal stimulus and monetary easing, and a major partnership between OpenAI and AMD that boosted technology stocks. Japanese government bond yields rose to multi-decade highs, while the yen weakened against the U.S. dollar. Other markets in Asia showed mixed performances, with gains in Taiwan and Southeast Asia but losses in Australia. The rally in U.S. markets, especially in tech shares like AMD, also supported Asian equities, reflecting enthusiasm about artificial intelligence developments. Meanwhile, oil prices increased following OPEC+'s restrained production plans, while gold prices edged up slightly.