Asian equities surged sharply at the start of the week, led by a powerful rally in Tokyo that pushed the Nikkei 225 index past the psychological 50,000 level for the first time. The move reflected growing optimism over the direction of global monetary policy and a renewed risk-on sentiment across financial markets.
Gains across the region were further supported by stronger U.S. futures, suggesting a potential continuation of Wall Street’s recent rally. S&P 500 futures rose 0.7%, Nasdaq 100 futures gained 0.9%, and Dow Jones futures added 0.6%, as investors interpreted moderate U.S. economic data as giving the Federal Reserve more room to ease interest rates.
Tokyo Leads, Asia Follows
The Nikkei’s surge became the highlight of the morning session. The benchmark index broke to a fresh all-time high above 50,000, driven by strong demand for technology shares and expectations that a persistently weak yen will continue to support Japan’s exporters. “The momentum in Japan reflects a rare combination of ample global liquidity and corporate reforms improving valuations,” said one Tokyo-based analyst.
Currencies & Commodities: Dollar Slips, Oil Rises
The U.S. Dollar Index (DXY) edged lower, boosting the appeal of Asian assets, while crude oil prices — both Brent and WTI — advanced amid a solid demand outlook.
However, the move could be a double-edged sword for India: positive for energy and commodity-exporting stocks, but potentially pressuring the trade balance due to higher oil import costs.
Ade Yunus, ST WPA
Global Market Strategies