Tokyo’s stock market tumbled over 4% after the yen surged, following Shigeru Ishiba's election as head of Japan’s ruling party. This raised expectations of continued interest rate hikes by the Bank of Japan, hurting exporters like Sony and Toyota. While Tokyo struggled, China’s markets in Hong Kong and Shanghai rose sharply, with Hong Kong up 3% and Shanghai over 5%, driven by economic stimulus. Chinese authorities introduced new measures, such as mortgage rate cuts and easing home-buying restrictions, aiming to revive the property sector and combat the housing slump.