Before Jobs Data & Tariff Ruling, Stocks Are Range-Bound – Asia Market Wrap
The stock rise continued into Asia, where lower values and stronger growth prospects enticed investors to look beyond US markets.
The MSCI All Country World Index, one of the broadest indicators of the equity market, surged 0.1% to an all-time high as Asian equities set a new record. Equity-index futures suggested that the rise might continue into Europe, but contracts forecast a slower start for US equities after the S&P 500 finished at a high on Monday.
Amid the bullish attitude in markets, Treasuries slipped down, with the benchmark 10-year yield jumping more than 1 bps to 4.19%. Gold and silver reversed earlier losses as Citigroup gave an optimistic outlook for them. Brent crude rose to its highest level since November following Trump’s comments about slapping penalties on countries doing business with Iran.
Much of the activity occurred in Japan, where stocks soared and government bond yields rose on anticipation that PM Takaichi will announce a snap election. The Yen fell to its lowest level against the Dollar since July 2024. Defence and nuclear companies soared in the so-called “Takaichi trade,” which contributed to market gains, bond losses, and a weak currency.
Asian investors were focussing on Japan’s advances. The Yen lagged its Group-of-10 counterparts on concern that a sudden election would result in more fiscal spending and faster inflation.
