BEIJING (dpa-AFX) - Asian shares fell in thin holiday trade on Monday, with mainland China, Taiwan and South Korean markets closed for holidays.
Japanese markets bucked the weak trend, long-term bonds tumbled, and the yen touched a fresh low since early August against the U.S. dollar as pro-business leader Sanae Takaichi's victory in the ruling Liberal Democratic Party leadership race stoked bets on a revival in big spending and loose monetary policy.
The Nikkei average jumped 4.75 percent to a record high of 47,944.76 while the broader Topix index settled 3.10 higher at 3,226.06.
Defense-related shares topped the gainers list, with Kawasaki Heavy Industries climbing 9.4 percent and Mitsubishi Heavy Industries rallying 11.2 percent.
Automakers Nissan Motor, Honda and Toyota surged 4-5 percent after reports emerged that U.S. President Donald Trump is considering significant tariff relief for U.S. auto production.
Hong Kong's Hang Seng index fell 0.67 percent to 26,957.77 as the U.S. government shutdown entered its second week.
U.S. Democrats stand firm on healthcare benefits, while President Trump threatens layoffs and budget cuts.
Australia's benchmark S&P/ASX 200 hit a fresh August high before reversing course to end marginally lower. While financials declined on interest-rate jitters, soaring gold prices boosted mining stocks.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended down 0.18 percent at 13,489.24 as investors pondered over the potential impact of U.S. President Donald Trump's tariff policies and attacks on the independence of the Federal Reserve.
Market attention in the week ahead will largely be fixed on the earnings calendar along with scheduled address from several Federal Reserve officials, including Fed Chair Jerome Powell.
Oil prices rose over 1 percent in Asian trade after OPEC+ announced a modest production boost of 137,000 barrels a day in November, tempering some concerns about supply additions.
The dollar was little changed, retracing some recent losses on uncertainty caused by the government shutdown.
Gold surged more than 1 percent to a new record high past $3,900 an ounce as U.S. shutdown worries added to the momentum from expectations of more Fed rate cuts.
U.S. stocks ended mixed on Friday as the government shutdown put the release of key economic data, including monthly jobs numbers, on hold.
However, a measure of U.S. services sector activity stalled in September amid a sharp slowdown in new orders and weak hiring, bolstering investor confidence that the Federal Reserve will continue cutting interest rates in the coming months.
The S&P 500 edged up marginally and the Dow added half a percent to close at record highs, while the tech-heavy Nasdaq Composite eased 0.3 percent, dragged by sharp decline in shares of Palantir Technologies.
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