Asian Stocks Rise to Record, Gold and Silver Gain: Markets Wrap
(Bloomberg) — Asian stocks climbed to a record as a broad advance across risk assets took hold, with gains in tech stocks, Bitcoin and gold extending momentum from Friday’s rally on Wall Street.
The Bloomberg APAC Large & Mid Cap Price Return Index gained as much as 2.2%, while the Nikkei 225 Index surged as much as 5.7% to an all-time high following a historic election victory by Japan’s Prime Minister Sanae Takaichi. The Kospi Index — a poster child for AI investments — jumped 4%. That came after US gauges rose about 2% on Friday to recoup some of the week’s losses.
In a sign the rally may sustain, US equity-index futures gained on Monday. With risk appetite returning, Bitcoin recovered from its drop and Treasuries fell, with the yield on the 10-year benchmark rising one basis point to 4.22%. Gold and silver rose, though the precious metals were still way off their record highs.
As US investors rotate away from richly valued technology stocks — the Dow Jones Industrial Average pushed above 50,000 on Friday — Asian markets may benefit from comparatively lower valuations and stronger growth prospects. Monday’s rally shapes the week ahead, with markets watching for signs participation can broaden as investors reassess valuations and the scale of AI investment.
Traders were taking advantage of the selloff earlier last week, picking up some cheap stocks to extend the rotational trade into cyclicals and away from tech, said Tony Sycamore, an analyst at IG in Sydney. The Wall Street tailwind and Japan election results mean “at least for the very, very short term, we’re going to see a good risk-on session across Asian equity markets,” he added.
Meanwhile, the yen strengthened against the dollar after Takaichi’s victory, moving away from a zone seen as triggering intervention. Traders will be watching the level of 159.45 per dollar reached in mid-January, the yen’s weakest since 2024. Government bond yields in the country fluctuated.
What Bloomberg strategists say…
Takaichi’s overwhelming election win spurs expectations for more aggressive fiscal policies. That has the potential to boost global yields, many of which are already elevated amid inflation and issuance concerns, and higher borrowing costs would weigh on an already-fragile outlook for stocks worldwide.
— Garfield Reynolds, MLIV Team Leader. For full analysis, click here.
Meanwhile, Friday’s rally pushed the S&P 500 to almost breakeven for the week. Still, US stocks face more selling this week from trend-following algorithmic funds, according to Goldman Sachs Group Inc.’s trading desk.
“The inability to transfer risk quickly lends itself to a choppier intraday tape and delays stabilization in overall price action,” Goldman’s trading desk team including Gail Hafif and Lee Coppersmith wrote in a note to clients Friday.
The market narrative has shifted from confidence in synchronized growth and abundant liquidity to uncertainty driven by volatility, labor-market weakness and AI-driven disruption, wrote Bob Savage, head of markets macro strategy at BNY.
With diversification under strain and financial conditions tightening, investors are forced to reassess risk, liquidity and policy assumptions, he wrote.
Elsewhere, the Thai baht strengthened after results from Sunday’s election showed the ruling Bhumjaithai party was on track to win the most seats and in pole position to form a coalition. The outcome may lift the nation’s stocks as the potential for policy continuity is a relief for those who feared further political dysfunction.
“Overall policy continuity is a scenario that may ultimately result in stability,” said Brendan McKenna, a strategist at Wells Fargo in New York. “Markets are usually comfortable with clarity and the ruling party winning offers a bit more clarity.”
In other political news, investors will be watching developments in the UK after Keir Starmer’s future is in the balance following a crisis over the appointment of Peter Mandelson as ambassador to Washington that claimed the UK prime minister’s closest aide.
In the US, Treasury investors will prepare for a flurry of economic reports that are expected to offer clues for when the Federal Reserve intends to resume interest-rate cuts.
With markets attuned to the policy outlook, attention will focus on a busy US data calendar this week, highlighted by January payrolls on Wednesday and inflation figures two days later. The unusual clustering follows last month’s partial government shutdown, which delayed several key economic releases.
Traders see less than a 20% chance that the Fed will reduce rates next month, after policymakers decided to hold the benchmark at a range of 3.5% to 3.75% in January.
In commodities, Brent crude dipped 0.9% as tensions eased in the Middle East.
Corporate News:
DBS Group Holdings Ltd. reported fourth-quarter profit that missed expectations due to headwinds from lower rates and higher tax expenses. Apple Inc. is going to begin a 2026 product blitz with the iPhone 17e, updated iPads and fresh Macs. Samsung Electronics Co.’s shares climbed as much as 6.4% after a report that the company will soon begin mass production of HBM4 memory chips, used as part of the buildout for artificial intelligence infrastructure. Shares of Montage Technology Co. jumped 57% in their Hong Kong debut on Monday after a share sale that raised $902 million. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 11:55 a.m. Tokyo time Japan’s Topix rose 2.3% Australia’s S&P/ASX 200 rose 1.9% Hong Kong’s Hang Seng rose 1.7% The Shanghai Composite rose 1.2% Euro Stoxx 50 futures rose 0.4% Currencies
The Bloomberg Dollar Spot Index was unchanged The euro was little changed at $1.1822 The Japanese yen rose 0.3% to 156.82 per dollar The offshore yuan was little changed at 6.9318 per dollar Cryptocurrencies
Bitcoin fell 0.1% to $70,580.29 Ether fell 0.5% to $2,082.88 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.22% Japan’s 10-year yield advanced 3.5 basis points to 2.270% Australia’s 10-year yield advanced four basis points to 4.86% Commodities
West Texas Intermediate crude fell 0.9% to $62.99 a barrel Spot gold rose 0.9% to $5,007.37 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess, Joanna Ossinger and Gabrielle Ng.
©2026 Bloomberg L.P.
