Global shares rise after Japan's prime minister announces plan to resign
[September 08, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Global shares mostly rose with Japan's benchmark jumping
higher in Monday morning trading, despite the looming political
uncertainty after Prime Minister Shigeru Ishiba announced last night
that he plans to resign.
France's CAC 40 edged up nearly 0.2% in early trading to 7,688.69, while
Germany's DAX rose 0.6% to 23,742.28. Britain's FTSE 100 added 0.2% to
9,224.85. U.S. shares were set to drift higher with Dow futures up 0.2%
at 45,530.00. S&P 500 futures rose 0.2% to 6,504.50.
Analysts said Ishiba's announcement was expected for some time and
welcomed it as moving things forward, although uncertainty remains as
the ruling Liberal Democratic Party will need to hold an election to
choose a new leader. Ishiba will remain prime minister until his
successor is chosen and approved by parliament.
“Markets may react short-term to the temporary uncertainty of lame-duck
leadership, but this may resolve once a new leader is chosen. Meanwhile,
the LDP’s position as a minority leading party is unlikely to change
anytime soon, and as such compromise will be the name of the
policy-making game,” said Naomi Fink, chief global strategist at Amova
Asset Management.
Japan's benchmark Nikkei 225 gained 1.5% to finish at 43,643.81. South
Korea's Kospi gained 0.5% to 3,219.59. Australia's S&P/ASX 200 lost 0.2%
to 8,849.60.
Hong Kong's Hang Seng edged up 0.9% to 25,633.91, while the Shanghai
Composite rose 0.4% to 3,826.84.
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People stand in front of an electronic stock board showing Japan's
Nikkei index at a securities firm Monday, Sept. 8, 2025, in Tokyo.
(AP Photo/Eugene Hoshiko)
 Also Monday, Japan's Cabinet Office
said the economy expanded at a stronger rate in the fiscal first
quarter than previously estimated, at a seasonally adjusted 2.2%
annualized rate, better than the earlier 1.0% rate as solid consumer
spending and inventories lifted growth more than previously thought.
Japanese auto stocks rallied after the U.S. finalized a trade deal
with Japan. Tariffs on Japanese autos surged to 15% from the initial
2.5%, considerably lower than the 27.5% initially discussed.
Toyota stock gained 0.3%, while Nissan stock rose 2.4%. Subaru
issues added 1.3%, while Mitsubishi Motors edged up 1.2%.
“The Bank of Japan remained in focus as strong wage data increased
expectations for a potential rate hike later this year,” said Bas
Kooijman at DHF Capital SA, noting that wages were rising.
In energy trading, benchmark U.S. crude added $1.06 to $62.93 a
barrel. Brent crude, the international standard, rose $1.14 to
$66.64 a barrel.
In currency trading, the U.S. dollar edged up to 147.70 Japanese yen
from 147.39 yen. The euro cost $1.1733, inching up from $1.1723.
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