Nikkei 225 took a giant leap in morning trading and was up 4.5 percent by lunchtime. The increase coincides with the election of Sanae Takaichi, who was appointed new chairman of Japan's ruling party, the Liberal Democrats, over the weekend.
Takaichi, who is described as stimulus-friendly, is expected to take over as the country's prime minister, reports CNBC.
Several Japanese stocks are rising sharply on Monday. Among other things, the technology and industrial stocks Kawasaki and Mitsubishi Heavy Industries are doing well, up 12 and 13 percent, respectively.
Chinese exchanges in Shenzhen and Shanghai, as well as the South Korean Kospi, are all closed due to a public holiday. The Hong Kong-based Hang Seng is falling by 0.7 percent.
