FX.co ★ Asian Shares Mixed As China Adds To Stimulus; Nikkei Skids

Asian stocks wrapped up Monday on a mixed note, with notable gains in mainland Chinese and Hong Kong markets driven by stimulus excitement, whereas Japanese stocks experienced significant losses following the election of Shigeru Ishiba, a critic of Japan's longstanding ultralow interest rates, as the head of Japan's ruling party.

In China, September marked the fifth consecutive month of contraction for factory activity, according to an official survey, though there were signs of slight improvement in the broader economic sentiment.

The non-manufacturing business sector showed stable performance in September, but private survey PMIs underperformed, indicating persistent weakness in both manufacturing and services sectors.

The Japanese yen stabilized today after Ishiba advocated for a loose monetary policy, emphasizing the need for the country's monetary policy to remain accommodative.

Geopolitical concerns continued to affect investor sentiment after the Israeli military carried out an air raid targeting the heart of Lebanon's capital, a first in years.

Gold prices remained steady in Asian trading ahead of Federal Reserve Chair Jerome Powell's speech and forthcoming U.S. employment data.

Oil prices rose over 1 percent, influenced by China's stimulus measures and recent developments in the Middle East over the weekend.

Chinese stocks climbed for the ninth consecutive day, extending a historic turnaround after three major cities in China relaxed home-buying restrictions, and the central bank announced plans to lower mortgage rates for existing home loans by October 31.

The Shanghai Composite Index surged by 8.06 percent to 3,336.50, while Hong Kong's Hang Seng Index increased by 2.43 percent to 21,133.68.

In Japan, markets fell sharply after Ishiba expressed support for the Bank of Japan's plans to raise interest rates from near-zero levels and suggested possible corporate tax hikes.

The Nikkei 225 plummeted by 4.80 percent to 37,919.55, and the broader Topix index decreased by 3.47 percent to 2,645.94.

Automaker stocks, including Honda Motor, Toyota, and Nissan, declined between 6-8 percent following a drop in the dollar's value from over 146 yen to under 143 yen.

South Korean stocks also fell as investors awaited further U.S. economic data for more insight into the interest rate outlook. The Kospi Index dropped by 2.13 percent to 2,593.27, with tech giants Samsung Electronics and SK Hynix losing 4.2 percent and 5 percent, respectively.

Australian markets advanced to a new record high, supported by China's extensive stimulus measures aimed at reviving its property market, which provided a boost to mining and energy stocks.

The benchmark S&P/ASX 200 increased by 0.70 percent to 8,269.80, while the broader All Ordinaries index rose by 0.73 percent to close at 8,538.40.

Conversely, New Zealand's benchmark S&P/NZX-50 index slightly dipped by 0.27 percent, settling at 12,423.82.

On Friday, U.S. stocks ended mixed as a broad selloff among chipmakers, led by AI favorite Nvidia, offset gains sparked by a soft PCE inflation report and strong consumer sentiment data.

Data revealed that the Fed's preferred inflation measure had slowed to 2.2 percent in August from 2.5 percent in July, against economists' predictions of 2.3 percent.

However, core PCE remained steady at 2.7 percent, heightening concerns that the Federal Reserve might not pursue consecutive interest rate cuts.

The Dow Jones Industrial Average inched up by 0.3 percent to a new record high, while the tech-heavy Nasdaq Composite and the S&P 500 decreased by 0.4 percent and 0.1 percent, respectively.