[MARKET ANALYSIS] Nikkei 225 weighed on following potential formation of new opposition party; Rio Tinto and BHP collaborate to extract iron ore

• Asia-Pac stocks trade mostly in the green, except the Nikkei, as regional markets outperform their US counterparts.
• ASX 200 continues its trend higher, aided by gains in the mining and materials sectors, as metals reach new ATHs and on news that Rio Tinto (RIO AT) and BHP (BHP AT) are collaborating to extract iron ore in the Pilbara region.
• Nikkei 225 is the worst performer among its Asia-Pac counterparts, as Japan's opposition parties, the CDP and Komeito, reportedly start talks to form a new party. Price has fallen back below 54,000 and is acting as resistance as the APAC session continues.
• KOSPI trades comfortably in the green, extending to new ATHs and nearing 4,750, whilst the BoK kept rates steady as expected in a unanimous decision.
• Hang Seng hovers just shy of ATHs at 27,380, while the Shanghai Comp. oscillates either side of the unchanged mark as Chinese markets struggle to gain traction.
• US equity futures trade flat, finding support following Wednesday’s tech-led sell-off.
• European equity futures are indicative of a positive open, with the Euro Stoxx 50 future +0.2% after cash closed -0.4% on Wednesday.

The Nikkei 225 is underperforming compared to its regional counterparts, primarily due to the potential formation of a new opposition party in Japan, which may destabilize the political landscape. This situation is affecting investor sentiment, leading to selling pressure and forming a resistance level just below 54,000. In contrast, the collaboration between Rio Tinto and BHP in iron ore extraction is indicative of positive dynamics in the mining sector, contributing to gains in the materials space.