(MENAFN) Asian stock markets are showing a positive trend, driven by growing optimism that tensions between the US and China over trade will lessen, enhancing investor confidence.

Additionally, the election of Sanae Takaichi as Japan's first female prime minister has further added to the upbeat sentiment.

In Japan, Takaichi secured 237 votes in parliament, winning the prime ministerial position. Her tenure is expected to involve a stance against potential interest rate hikes by the Bank of Japan (BoJ), along with a preference for increased fiscal stimulus, despite the nation's ongoing debt challenges.

Following her victory, Japan's Nikkei stock index surged to a historic peak, marking an all-time high.

This reflects the market’s positive response to the political change and economic outlook under her leadership.

Globally, the appetite for risk remains elevated as trade concerns between the US and China continue to ease.

Focus has shifted to the planned talks between the two nations in South Korea, which come as a relief to investors who have been concerned about escalating trade tensions in recent weeks.

US President Donald Trump expressed confidence on Monday, stating he believes a “very fair” agreement will be reached, paving the way for a strong trade deal with Chinese President Xi Jinping during their anticipated meeting in South Korea.

As a result of these developments, Japan's Nikkei 225 index rose by 0.15%, closing at a record high of 49,261 points, while South Korea's Kospi index gained 0.24%, ending the day at 3,823.8 points.

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