TOKYO — On Monday, shares in Asia experienced an uptick, while the yen weakened amid a backdrop of political instability following the ruling party’s loss of majority in Japan’s lower house during the recent elections.

In the forex market, the U.S. dollar increased significantly, trading at 153.76 yen compared to 152.24 yen, and showing a notable rise from around the 140-yen range observed last month. The euro was valued at $1.0796, slightly down from $1.0803.

The decline of the yen is beneficial for major Japanese exporters, such as Toyota Motor Corp., whose shares rose by 3.7% during trading in Tokyo. Similarly, Nintendo Co. and Sony Corp. saw their stocks increase by 2.6% and nearly 2.0%, respectively.

Although Japan’s ruling Liberal Democratic Party (LDP) remains the largest party, it suffered a setback on Sunday when several members were not reelected due to a scandal involving undisclosed campaign funds.

The ruling coalition, including the junior partner Komeito, managed to secure 215 seats, a significant decrease from the previous majority of 279, as reported by Japanese media outlets. While a government transition is not currently anticipated, the LDP may seek an additional coalition partner.

In terms of market performance, Tokyo’s stocks advanced, with analysts indicating that the LDP’s electoral loss had been largely anticipated and already reflected in market movements.

Japan’s key Nikkei 225 index surged by 1.6% in morning trading, reaching 38,527.52. In Australia, the S&P/ASX 200 experienced a minor increase, climbing nearly 0.1% to 8,217.80, while South Korea’s Kospi index rose 0.6% to 2,598.73. Hong Kong’s Hang Seng index added 0.1%, reaching 20,614.74, and the Shanghai Composite increased by 0.3% to 3,310.63.

In the U.S., stock indexes concluded last week with a mixed performance, marking the market’s first losing week since early September. The S&P 500 ended with minimal change, despite an earlier increase of 0.9%. Conversely, the Dow Jones Industrial Average saw a decrease of 0.6%, resulting in its first weekly loss after a streak of six consecutive gains, while the Nasdaq composite edged up by 0.6%.

Investors remain focused on company earnings reports, which have mostly exceeded expectations. Over one-third of S&P 500 companies have disclosed their recent quarterly results, and positive outcomes have been commonplace. Earnings announcements from companies worldwide are anticipated in the upcoming weeks.

In terms of fixed income, Treasury yields ended last week on a higher note, with the yield on the 10-year Treasury note rising to 4.24% from 4.21% the previous day. The upward trend in yields follows strong economic reports indicating the U.S. economy’s resilience. Next week, Wall Street will receive more data related to consumer confidence, employment, and inflation.

The Federal Reserve recently increased its benchmark interest rate to the highest level seen in 20 years, aiming to bring inflation down to the 2% target while avoiding a recession. A significant report detailing U.S. consumer spending is expected soon, anticipating a decrease in inflation to around 2%. The central bank began reducing interest rates in September, with expectations of another cut during the forthcoming November meeting.

Meanwhile, the central bank of Russia raised its key interest rate by two percentage points to an unprecedented 21% as it faces rising inflation driven by military expenditures following its invasion of Ukraine.

In energy markets, benchmark U.S. crude oil prices dropped by $3.19, settling at $68.59 per barrel. Brent crude, which serves as the international standard, fell by $3.25 to $72.80 per barrel.