Monday 28th October 2024: Asian Markets Climb on Weak Yen and Japan’s Political Shift

Global Markets:

•  Asian Stock Markets : Nikkei up 2.27%, Shanghai Composite up 0.07%, Hang Seng down 0.18% ASX up 0.16%
• Commodities : Gold at $2745.35 (-0.24%), Silver at $33.60 (-0.84%), Brent Oil at $72.64 (4.26%), WTI Oil at $68.69 (4.29%)
• Rates : US 10-year yield at 4.278, UK 10-year yield at 4.235, Germany 10-year yield at 2.291

News & Data:

• (USD) Core Retail Sales m/m  -0.7% vs 0.3% expected
• (USD) Core Retail Sales m/m  0.4%  vs 0.5% expected

Markets Update:

Japan’s Nikkei 225 and Topix indices rose on Monday, buoyed by a weaker yen amid political shifts, as the ruling Liberal Democratic Party (LDP) lost its parliamentary majority. The Nikkei gained 2.24%, leading Asian markets, while the Topix climbed 1.23%. The yen dropped 0.84% to 153.59. According to NHK, the LDP and coalition partner Komeito secured 215 of 465 seats, while opposition parties saw substantial gains.

Analysts suggest that this political uncertainty might influence the Bank of Japan’s (BOJ) decision on rate hikes. Izumi Devalier, chief Japan economist at Bank of America, noted that while instability could delay rate hikes, the BOJ might act due to the yen’s sustained weakness. Devalier suggested a rate hike could still be possible by December or January, contingent on currency movements.

Elsewhere in Asia, South Korea’s Kospi rose 0.61% and the Kosdaq increased by 1.02%. Australia’s S&P/ASX 200 edged up 0.17%. In contrast, Hong Kong’s Hang Seng fell 0.24%, and China’s CSI 300 declined 0.73% following a 27.1% year-on-year drop in China’s September industrial profits.

In the U.S., the Nasdaq Composite reached a new high of 18,518.61 on Friday, gaining 0.56%, led by tech stocks like Nvidia, Meta, Amazon, and Microsoft. However, the S&P 500 dipped by 0.03%, and the Dow Jones Industrial Average decreased by 0.61%.

Upcoming Events: 

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The post Monday 28th October 2024: Asian Markets Climb on Weak Yen and Japan’s Political Shift first appeared on IC Markets | Official Blog.