Global markets are heavily influenced by politics, with Japan's stock market reaching new highs amid expectations of fiscal stimulus and delayed rate hikes, while gold and bitcoin hit record levels amid concerns over fiat currency stability and the U.S. government shutdown. European markets remain flat, with key central bank speeches and economic data on the horizon.
Japanese stocks reached a record high after Sanae Takaichi was named the ruling party's leader, positioning her as Japan's next prime minister. The market responded positively to her pro-business stance, though concerns remain about the yen's decline and economic challenges ahead.
Stocks in Japan, South Korea, and Taiwan reached record highs driven by optimism over artificial intelligence growth and expectations of a Federal Reserve interest rate cut.
Japan's stock indices hit record highs driven by strong earnings and expectations of U.S. tariff adjustments, while other Asian markets showed uneven recovery amid cautious investor sentiment following Wall Street's retreat and U.S. Federal Reserve policy signals, including the appointment of Stephen Miran which suggests a dovish rate cut outlook.
Asia markets fell as China's annual exports dropped for the first time in seven years, but Japan stocks extended their record rally. China's consumer price index fell less than expected, while its exports for December beat expectations, but overall trade declined in 2023. The Bank of Japan is unlikely to shift its ultra-loose monetary policy soon, with a portfolio manager arguing against a policy unwind. Oil prices rose after U.S. and U.K. strikes on Houthi rebels in Yemen, and shares of Uniqlo's parent company spiked after better than expected first quarter results. Additionally, Goldman Sachs highlighted opportunities in Asian tech stocks, and the Federal Reserve remains ready to cut interest rates despite higher inflation.