After the Japanese Vote, Yen Declines and Oil Slumps – Asia Market Wrap

Crude prices fell after Israeli strikes on Iran’s oil facilities. The Yen plummeted after Japan’s ruling coalition failed to obtain a parliamentary majority, fuelling fears that political instability might make the central bank less aggressive.

Oil fell more than 5% at one point, while gold moved lower after Iran stated its oil industry was back to normal following Israel’s attacks on military installations across the nation in retribution for a missile bombardment earlier in the month.

In currency markets, the Yen was in the spotlight, falling to its lowest level in roughly three months versus the Dollar after Prime Minister Shigeru Ishiba’s bet to call a snap election failed. The cheaper Yen, which boosts the nation’s export-oriented economy, boosted the Topix index by up to 1.8%. Equity futures in Europe and the US both gained.

Chinese equities fell after industrial business profits fell in September, posing a challenge to the economy as deflationary pressures weaken corporate finances. Meanwhile, China’s central bank introduced a new tool to assist control liquidity.

The stock market rally faltered Friday, with the S&P 500 posting its first weekly loss in seven weeks as a gain in technology firms failed to outweigh a decline in bank shares. According to data, five of the so-called Magnificent Seven are anticipated to report earnings this week, with the slowest aggregate quarterly earnings expansion in six quarters.