Asian Markets Explode, Yen Falls, Gold Breaks Records Again!
Asian stocks soared to new highs, led by Japan's Nikkei 225, which surged over 4% following the election of pro-stimulus lawmaker Sanae Takaichi as the country's next prime minister. This unexpected political shift lifted investor optimism, fueling gains across the region and pushing MSCI's Asian shares index to a record. Meanwhile, the Japanese yen weakened sharply against the US dollar and euro, sliding toward a key psychological level of 150 against the greenback as concerns about delayed Bank of Japan rate hikes grow.
Gold continued its strong rally, climbing above $3,900 an ounce to a fresh record high, driven by ongoing economic uncertainties and expectations of looser monetary policies worldwide. Bitcoin also hovered near its recent peak, signaling sustained investor appetite for risk assets, especially in the tech sector. This optimism was further boosted by Nvidia's partner Hon Hai Precision reporting an 11% rise in quarterly sales, reflecting strong demand in AI infrastructure. Oil prices advanced after OPEC+ agreed to a cautious revival of halted supply, supporting commodity markets.
The US government shutdown persists, delaying crucial payroll data that traders rely on for economic cues. Despite this, markets showed resilience with futures pointing to another Federal Reserve 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 also took legal action to block potential mass layoffs, adding to political uncertainty in the US.
In Europe, French bond futures attracted attention amid political turbulence following President Macron's largely unchanged cabinet, which sparked opposition backlash. Newly appointed finance minister Roland Lescure faces a tough task passing the budget through a divided parliament. Meanwhile, the euro weakened against the dollar amid broad greenback strength, highlighting ongoing global market tensions as investors navigate shifting political and economic landscapes. (asd)
Source: Newsmaker.id
