Stocks Set to Continue Rally, Yen Moving Lower – Asia Market Wrap

Stocks extended their climb into a fifth session, while currencies stabilised after a tumultuous Monday, as markets restored some stability following rumours of a potential Yen intervention.

The MSCI All Country World Index, one of the broadest measures of global equities, was just shy of a record high, with Asian shares rising 0.7% to an all-time peak. Equity-index futures indicated that the rise would continue into US and European stocks after Wall Street benchmarks rose on Monday.

The Yen fell 0.2% following two days of advances versus the dollar, amid speculation that the US and Japan may coordinate currency intervention. Gold and silver remained around record highs.

Recent trading has been marked by cross-asset volatility, fuelled by turbulence in Japan’s bond market and concerns about currency intervention. The focus now switches to the Fed’s policy decision on Wednesday, as well as megacap tech results, which will test the longevity of the AI-driven rise.

Despite the increased movement in currencies and metals, stock traders appeared unconcerned about the possibility for volatility. Wall Street indexes rebounded Monday after registering their first two-week losses since June.