06:43 AM EDT, 10/21/2025 (MT Newswires) -- Asian stock markets moved higher on Tuesday, as Japan installed a new prime minister and trading floors anticipated an improvement in China-US trade relations.

Hong Kong, Shanghai, and Tokyo finished in the green, as did other regional exchanges.

In Japan, the Nikkei 225 opened higher and finished up 0.3%, after the ruling Liberal Democratic Party head Sanae Takaichi was confirmed as Japan's new prime minister.

A softer yen boosted export issues. The new prime minister is regarded as a fiscal and monetary dove.

The benchmark Nikkei 225 rose 130.56 to 49,316.06, striking a fresh all-time zenith, as gaining issues outnumbered losers 125 to 99.

Leading the upside was game maker DeNa, up 6.6%, while Mitsui Mining and Smelting fell 3.4%.

In Hong Kong, the Hang Seng Index opened higher and held ground, closing up 0.7% as traders leaned into sentiments that Beijing-Washington trade tensions will ease.

The broad gauge Hang Seng rose 130.56 to 26,027.55, as gaining issues outnumbered losers 56 to 28. The Hang Seng TECH Index gained 1.3% on the day, while the Mainland Properties Index rose 0.1%.

Leading the upside was China Life, gaining 6%, while toymaker Pop Mart International declined 8.1%.

On the mainland, the Shanghai Composite rose 1.4% to 3,916.33.

On the other regional exchanges, the South Korean KOSPI rose 0.2%, striking a fresh record high; the Taiwan TWSE advanced 0.1%, also hitting a new high; the Australian ASX 200 gained 0.7%; the Singapore Straits Times Index rose 1.2%, and the Thai Set rose 0.5%. In late trading in Mumbai, the Sensex was up 0.1%.