Japan’s Nikkei 225 pares gains after hitting record highs as Takaichi becomes prime minister

Japan’s benchmark Nikkei 225 pared gains Tuesday, falling from record highs, after hardline conservative Sanae Takaichi won the lower house vote, to become Japan’s first woman prime minister.

She received 237 votes, clinching the majority of the 465-seat chamber, according to public broadcaster NHK.

The Nikkei 225 index closed 0.27% higher at 49,316.06.

The Topix also pared gains to settle nearly flat at 3,249.5, after hitting a record high earlier in the day.

Meanwhile, South Korea’s Kospi index ended the day 0.24% at 3,823.84 after hitting a sixth consecutive record high, building on a rally spurred by optimism around an impending trade deal with the U.S.

South Korean stocks have been on a roll since U.S. Treasury Secretary Scott Bessent told CNBC in an exclusive interview Wednesday stateside that Washington was “about to finish up” trade negotiations with the Asian country.

“The devil’s in the details, but we are ironing out the details,” he added.

The Kospi index has risen about 61% year to date.

Auto stocks helped boost the index, with shares of Hyundai Motor climbing 3.43%, while Kia Corp added 1.14%. Heavyweight Samsung Electronics reversed course to end the session 0.61% lower, having gained 1.73% earlier in the session.

Australia’s ASX/S&P 200 rose 0.7% to close at 9,094.7. Shares of the country’s rare earth companies ended the day lower, after rising earlier in the session after Prime Minister Anthony Albanese and U.S. President Donald Trump signed a critical minerals agreement Monday stateside, aimed at countering China’s dominance.

Lynas Rare Earths ended the day 7.56% lower, Iluka Resources fell 0.13%. However, Pilbara Minerals added 2.55%, VHM skyrocketed over 20%, while Northern Minerals rose 1.85%.

Hong Kong’s Hang Seng Index rose 0.76% to 26,055 while mainland China’s CSI 300 jumped 1.53% to 4,607.87.

Hong Kong-listed shares of CATL gained 3.31% after the battery manufacturer posted strong third-quarter earnings late Monday. The Tesla battery supplier’s net profit for the July-September period rose 41% to 18.5 billion yuan ($2.6 billion).

Indian markets are closed for a holiday.

U.S. equity futures were little changed in early Asian hours, ahead of a busy earnings week from big-name companies and inflation data.

Overnight, the three key benchmarks in the U.S. rose on a rally in Apple shares after Loop Capital upgraded it to buy from hold.

 The Dow Jones Industrial Average closed 515.97 points, or 1.12%, higher at 46,706.58. The S&P 500 also climbed 1.07% to settle at 6,735.13, while the Nasdaq Composite advanced 1.37% to settle at 22,990.54.

— CNBC’s Sean Conlon and Pia Singh contributed to this report.