Japanese stocks surged nearly 3% in early trading Monday after pro-stimulus politician Sanae Takaichi won the Liberal Democratic Party leadership election. This victory paves the way for Takaichi to become Japan's first female prime minister and fueled market optimism over the potential for increased fiscal spending and economic stimulus.

The yen weakened 1.2% against the dollar, approaching the 150 level—a key psychological point for the foreign exchange market. Meanwhile, Japanese bond yields are expected to rise due to expectations of increased debt issuance under Takaichi's leadership. However, market participants expect policy to remain measured without triggering extreme volatility.

Gold continued its rally and broke another record above $3,900 per ounce, driven by global uncertainty, including the ongoing US government shutdown. Bitcoin also reached a new record high over the weekend. Oil prices rose slightly after OPEC+ only modestly increased supply by 137,000 barrels per day.

Meanwhile, the US shutdown continues without clarity, and key data such as nonfarm payrolls has not been released. Labor unions are challenging the White House's planned mass layoffs. On the corporate side, Hon Hai—a major Nvidia partner—reported an 11% surge in sales, signaling strong demand for AI infrastructure. In Europe, the euro slipped after President Macron's new cabinet drew sharp criticism from the opposition. (azf)

Source: Newsmaker.id