Risk-On Returns, Asian Stocks Solidly Green
Asian stock markets opened higher on Monday, following the positive sentiment from Wall Street's rally at the end of last week. After a dramatic week, investors appeared to be shifting back to "risk-on" mode and starting to hunt for stocks that had previously fallen.
South Korea and Japan were the most prominent. The Kospi surged around 4%—an index that has recently become the poster boy for AI investment themes—while the Nikkei also rallied after Prime Minister Sanae Takaichi's election victory lifted the market mood. In the US, futures also opened higher after the S&P 500 closed up around 2% on Friday, helped by buying the dip and data showing improving consumer sentiment.
In commodities, gold rose around 1.5% to $5,037 per ounce. Conversely, Brent fell around 1% as Middle East tensions were said to be easing. The combination of rising stocks, rising gold, and weakening oil made this week's opening feel mixed—but the underlying trend is clear: investors are taking risks again.
According to market analysts, this rally was also triggered by a rotation from technology stocks to cyclical sectors, as many took advantage of discounted prices after the sell-off at the start of last week. Takaichi's victory reinforced expectations of looser fiscal stimulus, which is usually good for stocks but puts pressure on Japanese bonds, while also causing the yen to fluctuate. The market is bracing itself: "Takaichi trades" have the potential to become a dominant theme, at least in the very short term. (asd)
Source: Newsmaker.id
