A broad risk rally swept through Asia, lifting regional equities to record highs as strong gains from Wall Street carried into the new week. The MSCI Asia Pacific Index jumped 2.5%, led by Japan, where the Nikkei surged nearly 4% following Prime Minister Sanae Takaichi’s decisive election victory. South Korea also outperformed, with the Kospi up over 4% as enthusiasm around AI-related stocks accelerated. European equity futures pointed higher, while U.S. futures were steadier after Friday’s rebound.
Improving sentiment also supported Bitcoin and precious metals, both rebounding alongside equities. At the same time, Treasuries sold off after reports that China urged domestic banks to curb exposure to U.S. government bonds, pushing the 10-year yield up to 4.24% and weighing on the dollar. The move has revived debate around global demand for U.S. assets, just as investors reassess valuations and rotate away from richly priced U.S. technology stocks. Asia, with lower multiples and stronger growth optics, is increasingly seen as a beneficiary of that shift.
In FX, USD/JPY moved lower toward the mid-156s following Japan’s election outcome, easing immediate intervention risk after trading near multi-year lows earlier this month. Elsewhere, the Thai baht strengthened after a stronger-than-expected election result. Looking ahead, attention turns to a heavy U.S. data calendar this week, with payrolls and inflation figures likely to shape expectations around growth, volatility, and the next phase of market leadership.
S&P 500 futures: flat
Nasdaq 100 futures: flat
Bitcoin: -0.2% to ~70,560
Gold: +1.4% to ~5,035/oz
WTI crude: -1.1% to ~62.85/bbl
