Japanese stocks experienced a significant increase on Monday, driven by the weakening of the yen to its lowest point in nearly a year and the avoidance of a government shutdown in the U.S. The Nikkei 225 share average surged by 1.6%, rebounding from a recent low. This positive movement was also supported by the Bank of Japan’s quarterly Tankan survey, which indicated an improvement in business sentiment. However, other equity markets in the region were more mixed, with Australian oil and resource shares negatively impacted by the decline in crude prices the previous week. Overall, trading was somewhat limited due to public holidays in Hong Kong and mainland China.

While Japanese stocks flourished, the mood was less enthusiastic elsewhere in the region. South Korea’s Kospi index saw a modest increase of 0.1%, while Australia’s benchmark stock index slipped by 0.05%. Australian investors were particularly cautious ahead of the Reserve Bank’s policy decision, which was the first under new governor Michele Bullock. New Zealand, which also sets its policy next week, experienced a 0.5% decrease in its stock benchmark. Interestingly, despite recent data indicating a stabilization of China’s economy, including an unexpected expansion in factory activity, there was a decline in Antipodean equities.

Crude oil managed to recover from a previous 1% decline as positive news from the U.S. and China boosted the demand outlook. Brent December crude futures rose by 0.2%, amounting to $92.38 a barrel, while U.S. West Texas Intermediate crude futures gained 0.3%, reaching $91.02 a barrel.

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