Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Japan’s stock market surged to record highs on Monday as fiscal dove Sanae Takaichi secured leadership of the ruling Liberal Democratic Party (LDP), setting her up to become Japan’s next prime minister. The Nikkei 225 Index jumped 2.8% to 47,061.07, breaching the 46,000 level for the first time, while the Topix Index rose 2.1%, reflecting strong investor optimism about Takaichi’s pro-growth stance.
The market rally came as investors cheered expectations of aggressive fiscal stimulus and continued monetary easing, key elements of Takaichi’s agenda. Known for her devotion to the late Shinzo Abe’s “Abenomics” policies, Takaichi, 64, is widely viewed as the most expansionary candidate among the five contenders who competed to replace outgoing Prime Minister Shigeru Ishiba, a known policy hawk.
In the bond market, the two-year Japanese government bond yield fell 5 basis points to 0.89%, as traders priced in expectations that the Bank of Japan will delay any near-term rate hikes. Meanwhile, the yen weakened more than 1% against both the US dollar and euro, highlighting renewed appetite for risk assets and Japan’s export-friendly outlook.
Analysts say a “Takaichi trade” had already formed ahead of the LDP election—long on equities and short on government bonds, particularly longer-dated maturities—anticipating her victory and her commitment to growth-oriented stimulus measures.
Market participants now expect new economic stimulus packages, continued liquidity support, and potential corporate tax reforms to sustain momentum in Japan’s post-pandemic recovery. With Takaichi at the helm, Japan’s financial markets appear poised for an era of revived optimism and policy continuity, echoing the spirit of Abenomics that once defined Japan’s economic resurgence.
