Japan’s Stocks Rise & Yen Declines as Ishiba to Depart – Asia Market Wrap

The Yen plummeted and Japanese markets rose after PM Ishiba announced his resignation. Asian markets climbed as traders increased bets on Fed rate cuts.

Japan’s currency fell 0.5% versus the Dollar on concerns that political unrest may reduce the likelihood of the BoJ boosting interest rates. The cheaper Yen and the possibility of increased government support boosted Japanese stocks.

Ishiba’s resignation announcement over the weekend came after his Liberal Democratic Party lost majorities in both houses of parliament in the recent elections. His departure heightens investor concern in the coming weeks until a new leader appears.

Meanwhile, European market futures crept higher, but French government bond futures remained unchanged ahead of Monday’s confidence vote in Parliament, in which Bayrou is expected to lose his premiership.

In commodities, oil rose after OPEC+ agreed on Sunday to increase output at a modest rate next month. Crude futures fell last week on expectations of an impending output surge. Gold moved close to Friday’s record high.