Tokyo stocks surged more than four percent to a record high Monday and the yen sank on bets that the new leader of Japan's ruling party will embark on a new era of loose monetary policy to kickstart the country's economy.

News of the victory for Sanae Takaichi -- who is expected to become prime minister this month -- fanned a fresh wave of optimism on Japanese trading floors as she has previously backed aggressive monetary easing and expanded government spending.

But the rally in Tokyo was not matched in the rest of Asia, where markets were mixed following last week's healthy advances and as investors keep tabs on lawmakers' attempts to end a US government shutdown.

However, expectations that the Federal Reserve will cut interest rates again this month continue to provide support to risk assets, with the S&P 500 and Dow both hitting peaks along with bitcoin and gold.

After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan's economy, rural areas and primary industries such as farming and fisheries.

Takaichi "looks more inclined than........

© International Business Times