
Japanese stocks surged to record highs after Prime Minister Sanae Takaichi secured a decisive election victory. he Nikkei 225 jumped 5.6% to a new peak of 57,337 while the Topix rose over 3%, also hitting a record.
The yen strengthened modestly against the dollar as the USDJPY fell to 156.20, while Japanese government bond yields rose.
In the US market, stock futures edged higher in early trading as investors looked ahead to key economic data and another round of earnings after a volatile week. Futures for the S&P 500, Nasdaq 100 and Dow all posted modest gains following Friday’s sharp rebound, when the Dow surged about 1,200 points to close above 50,000 for the first time, alongside strong gains in the S&P 500 and Nasdaq.
Last week’s turbulence was driven by a tech-led sell-off, particularly in software stocks, alongside a sharp but brief drop in bitcoin. Risk appetite improved into Friday, with software shares staging a relief rally and bitcoin climbing back above $70,000.
This week’s focus turns to delayed U.S. economic data, including the January jobs report and CPI. Investors are watching closely to see whether the recent rotation out of tech resumes or stabilizes depending on data and results.
In the commodities market, gold prices climbed toward $5,030 in early Asian trading as the metal extended its recovery on a weaker U.S. dollar and sustained central bank demand. Concerns over the Federal Reserve’s independence, linked to political pressure around Trump’s Fed chair nominee Kevin Warsh, continued to weigh on the dollar and support gold.
Additional upside came from strong central bank buying, with the People’s Bank of China increasing its gold reserves for a 15th straight month. Geopolitical factors also remain in focus, as cautious optimism around U.S.–Iran talks could ease safe-haven demand if negotiations progress, while the delayed U.S. January jobs report later this week is expected to provide further market direction.
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