(Sharecast News) - Asia-Pacific markets mostly advanced on Wednesday, led by fresh record highs in Japan as investors piled into the so-called 'Takaichi trade' amid rising expectations that prime minister Sanae Takaichi will call a snap general election, likely in February.
Japanese equities had been buoyed by bets on pro-growth policies and a weaker currency, with the yen touching its weakest level against the dollar since July 2024 after crossing the 159 mark.
Tokyo in the green as snap election chatter grows
In Tokyo, the Nikkei 225 climbed 1.48% to a record 54,341.23, supported by strong gains in exporters and industrial names.
Taiyo Yuden jumped 6.91%, Yaskawa Electric Corporation rose 6.6%, and Shiseido Company added 5.94%.
The broader Topix index advanced 1.26% to 3,644.16.
Mainland markets mixed as investors digest trade data
Chinese markets were mixed as investors digested a raft of trade data and ongoing concerns about domestic demand.
The Shanghai Composite slipped 0.31% to 4,126.09, weighed down by sharp declines in China Fortune Land Development, down 10.09%, Chongqing Zaisheng Technology, down 10.02%, and Changzheng Engineering Co, down 10.01%.
By contrast, the Shenzhen Component rose 0.56% to 14,248.60.
Data showed China's exports surged 6.6% year-on-year in December in US dollar terms, beating forecasts for 3% growth and accelerating from November's 5.9% increase, while imports rose 5.7%, the fastest pace in three months and well above expectations for a 0.9% rise.
For the full year, exports grew 5.5% while imports were flat, pushing the trade surplus to a record $1.19trn, up 20% from 2024.
Trade with the United States deteriorated sharply, with December shipments to the US plunging 30% from a year earlier and imports falling 29%, marking the ninth straight monthly decline.
For the full year, exports to the US dropped 20% and imports declined 14.6%, highlighting the impact of tariff tensions despite a one-year trade truce agreed in October between president Xi Jinping and his US counterpart Donald Trump, which included a rollback of some export controls and tariffs.
China also pledged to buy at least 12 million tons of US soybeans over the next two months, after importing 111.8 million tons last year, up 6.5% from 2024, though December soybean imports rose only 1.3% to eight million tons.
Rare earth exports jumped 32% in December to 4,392 tons and were up 12.9% for the year.
Concerns persisted that China's growing trade surplus could exacerbate global trade frictions, particularly with the European Union, as exporters redirected shipments to non-US markets.
Other regional markets manage gains
In Hong Kong, the Hang Seng Index rose 0.56% to 26,999.81, led by a sharp 18.96% jump in Alibaba Health Information Technology.
Haidilao International gained 9.15% and Nongfu Spring advanced 6.02%.
South Korea's Kospi 100 added 0.71% to 5,252.35, with LS Industrial Systems up 8.56%, Doosan rising 8.01% and SK Holdings gaining 5.16%.
Sentiment was tempered by political developments, after a special prosecutor requested the death penalty for former president Yoon Suk Yeol over his short-lived 2024 martial law declaration, with a court ruling expected on 19 February.
Australian equities edged higher, with the S&P/ASX 200 up 0.14% at 8,820.60.
Stanmore Coal surged 12.18%, IperionX climbed 7.19% and Neuren Pharmaceuticals rose 6.06%.
In New Zealand, the S&P/NZX 50 advanced 0.74% to 13,757.71, supported by gains in Eroad, up 4.13%, SkyCity Entertainment Group, up 3.17%, and Infratil, up 2.75%.
Dollar weaker against regional peers, oil prices climb
In currency markets, the dollar softened modestly against regional peers, last trading down 0.27% on the yen at JPY 158.71, as it weakened 0.07% against the Aussie to AUD 1.4955, and retreated 0.1% from the Kiwi to change hands at NZD 1.7412.
Oil prices were higher, with Brent crude futures last up 1.5% on ICE at $66.45 per barrel, while the NYMEX quote for West Texas Intermediate was ahead 1.52% at $62.08.
Reporting by Josh White for Sharecast.com.
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