Global markets advanced Monday as weak U.S. labor data boosted expectations of a Federal Reserve rate cut this month. Stocks rose and the dollar wavered, while gold hovered near record highs and Treasury yields stayed close to five-month lows. The U.S. economy added far fewer jobs than forecast in August, cementing bets on monetary easing.
Political uncertainty in Japan added volatility after Prime Minister Shigeru Ishiba resigned, raising questions over future fiscal and monetary policy. Investors are closely watching who will succeed him, with Liberal Democratic Party veteran Sanae Takaichi seen as a potential candidate. A supporter of looser policies, Takaichi has criticized recent Bank of Japan rate hikes. The yen weakened 0.6% to 148.39 per dollar, while the Nikkei surged 1.8%, nearing record highs.
In broader Asia, MSCI’s regional index gained 0.4%, while Chinese blue chips rose 0.3% and Hong Kong’s Hang Seng added 0.35%. U.S. S&P 500 futures climbed 0.19%, and European futures rose 0.45%.
The Fed is widely expected to cut rates by 25 basis points in September, though traders are pricing an 8% chance of a larger 50 bps move, with 68 bps of easing anticipated by year-end. Analysts argue lower rates are necessary to keep U.S. equities supported against global peers.
In Europe, political risks remain high as French Prime Minister Francois Bayrou faces a confidence vote likely to fail, deepening the euro zone’s second-largest economy’s crisis. The euro eased to $1.1713, while sterling traded at $1.3492.
Commodities extended gains, with gold at $3,588 per ounce, close to the $3,600 mark after rallying 37% this year. Oil also advanced about 1% as OPEC+ pledged slower output hikes from October amid weaker demand expectations.


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