Asian markets were mixed on Friday, led by Japan’s rally as investors awaited a crucial weekend vote to choose the country’s next prime minister. The Nikkei 225 surged 1.6%, hovering near record highs, after Bank of Japan Governor Kazuo Ueda signaled a cautious approach to future rate hikes, citing rising trade tensions and uncertainty over global growth.
Following the surprise resignation of Prime Minister Shigeru Ishiba, the leadership race has intensified, with Sanae Takaichi, Shinjiro Koizumi, and Yoshimasa Hayashi emerging as the leading contenders.
In contrast, Hong Kong’s Hang Seng Index fell 0.7%, dragged down by a sharp selloff in electric vehicle shares after Tesla plunged 5% overnight on Wall Street. Local EV makers — BYD, Li Auto, and Geely — dropped more than 3%, extending the broader tech weakness. Analysts warned that Trump’s plan to end U.S. electric vehicle subsidies could further pressure the global sector.
With China and South Korea closed for holidays, trading volume across the region was subdued.
Elsewhere, Australia’s ASX 200 rose 0.4%, supported by mining stocks, while Singapore’s Straits Times Index fell 0.3% and India’s Nifty 50 futures traded flat. Optimism over a potential Fed rate cut and Wall Street’s record highs offered some support to regional sentiment.