Japan parliamentary vote, Australia rare earth shares rise

TOKYO, JAPAN – JULY 27: Pedestrians and shoppers walk through the Akihabara area on July 27, 2023 in Tokyo, Japan. Japan’s core consumer price index climbed by 3.3% in June, outpacing the US figure for the first time in eight years as the Bank of Japan holds its monetary policy meeting on July 27 and 28. (Photo by Tomohiro Ohsumi/Getty Images)

Tomohiro Ohsumi | Getty Images News | Getty Images

Japan’s benchmark Nikkei 225 rose more than 1% to a fresh record at 49,739.76, after closing at an all-time high Monday. The Topix also added 0.48% to hit a record high.

Broader Asia-Pacific markets also opened higher, tracking Wall Street gains led by a rally in Apple shares.

Investors await Japan’s parliamentary vote, which is likely to see Sanae Takaichi become the country’s next prime minister, after the right-wing opposition Japan Innovation Party said Monday it was ready to back her premiership.

Australia’s ASX/S&P 200 rose 0.50%. Shares of the country’s rare earth companies rose after Prime Minister Anthony Albanese and U.S. President Donald Trump signed a critical minerals agreement Tuesday, aimed at countering China’s dominance.

Australia’s Lynas Rare Earths added 3.8%, Iluka Resources jumped nearly 6%, Pilbara Minerals rose 4.7%. VHM skyrocketed over 30%, while Northern Minerals soared nearly 15%.

South Korea’s Kospi index jumped 1.57%, while the small-cap Kosdaq gained 0.52%.

Futures for Hong Kong’s Hang Seng Index pointed to a higher open, trading at 26,232, against the index’s previous close of 25,858.83.

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.