Asian Markets Soar on Japan Rally, Gold Surge
Asian stock markets jumped to record highs on Monday, led by a strong rally in Japan and a sharp rise in gold. Investors responded to news of a new pro-stimulus leadership in Tokyo and growing demand for safe assets amid global uncertainty.
Japan Drives Rally
Japan’s Nikkei 225 index climbed more than 4%, pushing to its highest ever level after Sanae Takaichi won the leadership of the ruling party and is expected to become the country’s next Prime Minister. The yen weakened nearly 1.5% to 1.6% against the U.S. dollar, intensifying a “yen carry” trade that bolstered risk-asset flows. Meanwhile, long-term Japanese government bond yields rose on concerns about higher fiscal borrowing under new leadership.
Gold and Safe Havens Shine
Gold broke above USD 3,900 per ounce, marking a new record as investors sought protection against volatility and policy uncertainty. At the same time, Bitcoin continued to trade near recent highs, supported by growing interest in alternative assets amid central bank and government policy concerns.
Broader Market Dynamics
The MSCI index of Asian shares outside Japan also reached record levels, benefiting from global liquidity flows and optimism over monetary easing. Oil prices gained modestly after OPEC+ agreed to a restrained supply increase. In the U.S., markets showed mixed cues amid the ongoing government shutdown and speculation over future Fed rate cuts.
Outlook and Risks
Market watchers warn the rally could be vulnerable to policy missteps or disappointing corporate earnings. Key indicators to watch include Japan’s fiscal plans, bond market reaction, and investor appetite for risk assets if global tensions intensify.
