Asian shares mostly higher, led by rally in Japan

Nikkei 225 soared 3.1% to 53,549.16 at close, a record

Asian shares were mostly higher Tuesday, led by a rally in Japan. Nikkei 225 soared 3.1% to 53,549.16 at close, a record. Technology-related stocks helped lift the benchmark. Compute chip testing equipment maker Advantest surged 8.5%. Chip maker Tokyo Electron climbed 8.2% and SoftBank Group added 4.3%.

Investors are also closely monitoring the prospects for a possible snap election. Prime Minister Sanae Takaichi is expected to opt for an early election to help strengthen her policy mandate for higher government spending.

Hang Seng gained 0.7% to 26,786.69. Shares of China-based chip designer GigaDevice Semiconductor climbed as much as 54% in the company’s Hong Kong trading debut. The Shanghai Composite index dropped 0.6% to 4,138.76.

Kospi closed 1.5% higher at 4,692.64 at close, also a record.

In Australia, the S&P/ASX 200 gained nearly 0.6% to 8,808.50. Taiex increased 0.5%, while the Sensex in India shed nearly 0.5%.

Elsewhere, U.S. stock futures dropped slightly on Tuesday. The futures for the S&P 500 and the Dow Jones Industrial Average declined nearly 0.1%.

Concern over the potential consequences of a weakening of the U.S. central bank’s independence in setting interest rates appeared to be offset by investors’ expectations that President Donald Trump may prevail in pushing the central bank to reduce rates at a faster pace. Lower interest rates mean cheap credit and tend to fuel stronger stock prices.

Tensions between Trump and central bank Chair Jerome Powell escalated after the Department of Justice subpoenaed the bank and threatened a criminal indictment over Powell’s testimony regarding building renovations at the central bank’s headquarters.

On Monday, the S&P 500 rose around 0.2% to 6,977.27 to a new record. The Dow Jones Industrial Average also edged up 0.2%, to 49,590.20, for its own record. The Nasdaq composite increased 0.3% to 23,733.90.