With several major Asian markets closed for the Lunar New Year holiday, trading activity remained subdued, shifting attention to Japan. Significant political changes, including the resignation of the entire Japanese cabinet and the upcoming election of a new prime minister, combined with overnight stability in U.S. stocks, helped the Nikkei 225 index end a three-day losing streak. The yen weakened further.

Japanese equities opened higher and extended gains on Wednesday. By the end of the morning session, the Nikkei 225 had risen 1.2% to 57,253.46. The Topix index also advanced, climbing 1.4% to 3,813.05.

Earlier in the day, the cabinet of Prime Minister Sanae Takaichi resigned en masse. Both houses of Japan’s parliament are scheduled to hold an election in the afternoon to designate the next prime minister. The newly elected leader is expected to form a cabinet later the same day.

The U.S. dollar strengthened against the yen, rising 0.24% to 153.67. Spot gold prices recovered, climbing back above $4,900 with a daily gain of 0.51%.