Nikkei Rips Higher As PM Suga Cedes Party Leadership

It was a fairly sedate start to the final Asia-Pac session of the week, with participants largely sidelined ahead of the U.S. NFP release. A soft Caixin services PMI survey out of China applied some modest pressure to the major Chinese & Hong Kong equity indices, but the release wasn't really a gamechanger given a similar story in the already released official PMI equivalent (which focuses on larger firms) and the establishment of cross-cyclical policy in China in recent months. Activity picked up after the Tokyo lunch break as Japanese PM Suga noted that he would not stand for election as LDP Party head in the upcoming leadership vote, effectively ceding his position as PM. The Nikkei 225 surged, adding ~2% on the news, with hopes re: better management of the COVID crisis and the potential for fresh policy moves supporting. The bid in Japanese equities allowed U.S. e-mini futures to nudge higher.