Asian stocks surged to new highs, led by Japan's Nikkei 225, which surged more than 4% following the election of pro-stimulus lawmaker Sanae Takaichi as the next prime minister. This unexpected political shift boosted investor optimism, fueling gains across the region and pushing the MSCI Asia stock index to a record high. Meanwhile, the Japanese yen weakened sharply against the US dollar and the euro, sliding toward the psychologically key 150-dollar level as concerns about a delay in the Bank of Japan's interest rate hike intensified.
Gold continued its strong rally, rising above $3,900 an ounce to a new record high, driven by ongoing economic uncertainty and expectations of looser monetary policy worldwide. Bitcoin also held near its recent peak, signaling continued investor appetite for riskier assets, particularly in the technology sector. This optimism was further fueled by Nvidia partner Hon Hai Precision, which reported an 11% increase in quarterly sales, reflecting strong demand for AI infrastructure. Oil prices rallied after OPEC+ agreed to cautiously restore stalled supply, supporting commodity markets.
The US government shutdown continues, delaying crucial payroll data that traders rely on for economic cues. Despite this, the market showed resilience, with futures contracts pointing to another Federal Reserve interest rate cut in October. However, experts warn that a prolonged shutdown could increase market volatility and disrupt the broader rally. Unions representing hundreds of thousands of federal workers are also taking legal action to block potential mass layoffs, adding to political uncertainty in the US.
In Europe, French bond futures are attracting attention amid political turmoil following President Macron's largely unchanged cabinet, which has sparked a fierce backlash from the opposition. Newly appointed Finance Minister Roland Lescure faces a daunting task in passing a budget through a divided parliament. Meanwhile, the euro weakened against the dollar amid widespread greenback strength, highlighting ongoing global market tensions as investors navigate the changing political and economic landscape. (asd)
Source: Newsmaker.id