The majority of Asian stocks rose on Monday as concerns over the Israel-Iran conflict were soothed by a less severe than feared attack by Israel.

The majority of Asian stocks rose on Monday as concerns over the Israel-Iran conflict were soothed by a less severe than feared attack by Israel. Japanese shares rose past increased political uncertainty. 

Japanese markets were the best performers on Monday as the ruling Lib Dem Party lost its parliamentary majority, due to this there was investor betting that the Bank of Japan will not be so keen to raise interest rates with the political uncertainty within the country.

The attack by Israel on Iran over the weekend was not as severe as was expected due to both oil and nuclear facilities being left alone perhaps due to warning from the US and other countries not to engage with these targets. This all helped to quell further escalation in the conflict. Off the back of this Asian markets rose but oil slumped.

Regional markets took middling cues from a mixed Friday close on Wall Street, with focus turning squarely to a string of key technology earnings and economic readings due this week. U.S. stock index futures rose in Asian trade, on optimism over the Middle East. 

Japanese shares rise but rate hikes unlikely says investor betting 

Japan’s Nikkei 225 and TOPIX indexes rose 1.5% and 1.2%, respectively.

A coalition led by the country’s ruling Lib Dem Party lost its parliamentary majority in an election held on Sunday, raising doubts over the political make-up of the country in the coming years, local media reports showed. 

The Lib Dems will now have to seek alliances with smaller, regional parties, although this will cause the economic climate to be more fractured.

While such a scenario presents more uncertainty for Japanese markets, it also diminishes the ability of the Bank of Japan to keep raising interest rates.

Export-oriented stocks benefited from this as the yen fell sharply.

The central bank is set to meet later this week and is widely expected to keep rates unchanged. 

Asian markets steady with tech earnings, econ. data on tap

Broader Asian markets mostly drifted higher on Monday, with focus turning to a barrage of key U.S. technology earnings this week, as well as major economic readings. 

Five of Wall Street’s “Magnificent Seven” are set to report this week, providing cues for broader equity markets.

Australia’s ASX 200 rose 0.1% ahead of key inflation data due later this week. South Korea’s KOSPI added 0.6% as heavyweight technology stocks awaited more cues on the artificial intelligence trade. 

Chinese markets lagged, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moving in a flat-to-low range. Purchasing managers index data from the country is due this week, coming at the heels of several stimulus measures outlined by Beijing over the past month.

Hong Kong’s Hang Seng index traded sideways. 

Futures for India’s Nifty 50 index pointed to a positive open, with local stocks expected to see some bargain buying after clocking steep losses through October. More Indian earnings are also due in the coming days.

Source : (Investing.com)