Asian Shares Jump to Record on Japan, Gold Rallies: Markets Wrap

(Bloomberg) — Asian stocks climbed to a record, led by Japan, while gold advanced to an all-time high and Bitcoin hovered near its recent peak as investors bet that looser monetary policy and accelerating AI investments will bolster risk appetite.

The Nikkei 225 index jumped more than 4% to an all-time high after pro-stimulus lawmaker Sanae Takaichi was positioned to become the country’s next prime minister. The yen slid 1.5% to the closely watched 150 to the dollar while falling to a record low against the euro. The country’s 40-year bond yield plunged.

Gold rose above $3,900 an ounce to yet another record, extending a rally that’s been a feature of commodity markets all year. Bitcoin also set another all-time high over the weekend. Oil advanced after OPEC+ agreed Sunday to revive just 137,000 barrels a day of halted supply — a slower pace than earlier this year. Equity-index futures for the US also rose.

The moves indicate the rally in tech stocks — powered by bets on artificial intelligence — is set to resume after taking a breather Friday. While the US government shutdown meant the crucial nonfarm payrolls data didn’t get published, swap traders are confident the Federal Reserve will execute another quarter-point interest-rate cut in October.

“A dovish Japan adds to global liquidity and supports risk appetite broadly,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. “As long as the yen carry trade keeps running, it tends to be good news for equities and credit markets worldwide.”

A burst of new partnerships and ChatGPT-maker OpenAI’s valuation reaching $500 billion had spurred shares. Equities have climbed to successive record highs this year, with AI optimism adding to bullish momentum from prospects of monetary policy easing and resilient earnings.

“US conditions drive all these markets together,” said Frank Benzimra, head of Asia equity strategy at Societe Generale in Hong Kong. “The Fed is cutting in an economy not in a recession, and upward inflation risk. That is bullish for US equity, and Gold, and has implications for Asia.”

Meanwhile, Takaichi is set to become Japan’s first female prime minister after winning the Liberal Democratic Party leadership contest Saturday. While Takaichi’s appointment lifted growth expectations, it also raised concern over increasing bond supply while reducing chances of a BOJ rate hike this month.

What Bloomberg strategists say…

Japanese bond traders are piling into the short end in early trading to underscore the steepening shifts anticipated in response to Sanae Takaichi’s victory in the ruling party leadership race. It seems bond traders are anticipating the BOJ to ease off on hiking rates and the potential for the new leader to boost bond sales.

— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.

Defense equipment makers Kawasaki Heavy Industries Ltd., Japan Steel Works Ltd. and IHI Corp. all soared at least 10% at one point on Monday as Japanese defense and tech shares soared on speculation they’ll benefit from more government spending.

Meanwhile, the US government shutdown continued with unions representing hundreds of thousands of federal workers asking a judge to immediately block any mass firings by the Trump administration. The shutdown meant the Bureau of Labor Statistics didn’t publish the payrolls data Friday.

“The short-term market impact remains limited,” Dilin Wu, a strategist at Pepperstone Group, wrote in a note. “But prolonged fiscal gridlock could disrupt the broad market rally and lift volatility.”

Meanwhile, French bond futures opened lower in Asia trading on concern that the nation’s government may collapse after President Emmanuel Macron appointed a broadly unchanged cabinet.

Corporate News:

Nvidia Corp.’s major server production partner Hon Hai Precision Industry Co. reported 11% growth in quarterly sales, signaling healthy demand for AI infrastructure. Tata Capital Ltd.’s $1.7 billion initial public offering attracted anchor investors including funds managed by Morgan Stanley, Goldman Sachs Group Inc. and Nomura Holdings Inc. as well as domestic mutual funds and insurers. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 10:49 a.m. Tokyo time Japan’s Topix rose 2.7% Hong Kong’s Hang Seng fell 0.4% Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.2% to $1.1722 The Japanese yen fell 1.6% to 149.80 per dollar The offshore yuan was little changed at 7.1402 per dollar Cryptocurrencies

Bitcoin rose 1% to $124,021.76 Ether rose 0.7% to $4,528.38 Bonds

The yield on 10-year Treasuries advanced two basis points to 4.14% Japan’s 10-year yield was unchanged at 1.660% Australia’s 10-year yield was little changed at 4.33% Commodities

West Texas Intermediate crude rose 1.4% to $61.75 a barrel Spot gold rose 0.7% to $3,912.58 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Hideyuki Sano and Matthew Burgess.

©2025 Bloomberg L.P.