Asia report: Stocks mostly higher, analysts raise target for Nikkei

(Sharecast News) - Stocks ended mostly on the up across the Asia-Pacific region on Tuesday, following very sharp gains in Japan during the previous session. Worth noting, on Monday the US President said he was willing to begin talks with the Democrat in order to break the impasse over the country's budget.

The Nikkei-225 edged up 0.01% to 47,950.88 and the broader TOPIX index by 0.06% to 3,227.91.

As regards the outlook for Japanese equities, analysts at Julius Baer told clients that Japan remained an "attractive developed market" thanks to the election of Sanae Takaichi to lead its ruling party, the LDP.

Julius Baer lifted its target for the Nikkei Stock Average from 46,000 to 50,000 and said a softer yen, on expectations for a delay in rate hikes, might buoy exporters' earnings, Dow Jones Newswires reported.

Stock markets in Hong Kong, Shanghai and South Korea remained closed for holiday.

Taiwan's TAIEX meanwhile was ahead by 1.68% at 27,211.95.

Australia's All Ordinaries meanwhile was off by 0.26% to 9,253.63.

New Zealand's S&P NZX All Index rose 0.34% to 1,931.69.

Dollar/yen meanwhile gained 0.29% to 150.79 following a bruising session the day before and the yield on the benchmark 10-year JGB by two basis points to 1.692%.

In regional economic news, the World Bank reduced its forecast for economic growth in South Asia by almost one percentage point, forecasting a slowdown from 6.6% in 2025 to 5.8% for 2026.