Asian Shares Mixed as Japan PM Plans Stepdown, Fed Cuts Anticipated

Asian stock markets showed mixed performances amid political uncertainty in Japan and anticipation of key U.S. inflation data that could influence Federal Reserve rate decisions. Japan's Nikkei 225 briefly surpassed 44,000 but closed lower as Prime Minister Shigeru Ishiba's resignation stirred political uncertainty, with potential successors seen as less fiscally hawkish, which impacted investor sentiment. Hong Kong's Hang Seng reached a four-year high, buoyed by optimism from U.S. market gains and expectations of Fed rate cuts, while China's Shanghai Composite declined on weak export growth and COVID-19 concerns. South Korea's Kospi hit a yearly high supported by expectations of market-friendly tax reforms, whereas Australian markets fell due to job cuts announced by ANZ and profit-taking driven by fears of weak Chinese demand. Investors remain cautious amid global inflation worries, slowing growth, and trade tensions, with markets closely watching upcoming U.S. economic reports and central bank policies. The overall sentiment reflects a blend of optimism from anticipated U.S. monetary easing and caution stemming from regional political developments and economic challenges.