Japan's nominal wages in August rose for the 44th consecutive month, and real wages declined for the eighth consecutive month, as price increases outpaced inflation.
Hong Kong stocks traded down, driven by a decline in artificial intelligence-linked stocks. Financial markets in mainland China are scheduled to reopen on Thursday following a weeklong public holiday.
Japan's market indexes soared on the hopes that the newly elected LDP leader's minority government could provide additional stimulus and support the demand-driven inflation. The Japanese yen plunged 2%.
Japan's LDP leadership may seal the fate of the party at the next general election, as the party faces persistent allegations of lack of accountability and transparency and voters face a high cost of living.
Japan's market indexes trimmed year-to-date gains and booked losses in September following gains in five consecutive months. Confidence among manufacturing businesses slightly improved in the third quarter.
China's manufacturing activities struggled to expand for the sixth month in a row as businesses faced persistent headwinds from domestic slowdown and an uncertain export outlook.
As the LDP's leadership race tightens ahead of this Saturday's election, investors pay closer attention to likely policy differences between the two leading candidates.
Industrial profits among mainland corporations advanced 20% from a year ago in August, reviving hopes of an increase in profits in 2025. In the eight months to August, industrial profits inched higher 0.9% from a year ago.
Benchmark indexes in China and Hong Kong struggled to stay above the flatline amid worries of stretched valuations compounded by new U.S. sector tariffs covering pharmaceuticals, furniture, and trucks.
Japan's benchmark indexes struggle for the third consecutive day amid worries of stretched valuations. The June policy meeting indicated that the BoJ policymakers are set to raise rates if economic conditions warrant.
Japan's indexes struggled to advance following cautious comments from the Fed Chair, Powell. The yen hovered near 148, about 38% stronger against the U.S. dollar on the 40th anniversary of the Plaza Accord.
