Asian Markets Surge Amid Yen Slide; Caution Advised

Asian shares rose significantly, following U.S. tech-driven gains. The yen weakened to lows against the euro and Swiss franc, as Japan's interest rate hikes impacted government debt. Analysts warned of investor sentiment nearing extreme bullishness, often preceding market pullbacks. Precious metals and commodities also gained amid economic growth forecasts.

Asian stock markets experienced broad gains on Monday as tech-driven rallies on Wall Street inspired confidence, though the yen fell to historical lows against the euro and Swiss franc as Japan's interest rate hikes increased pressure on government debt.

Amid a holiday-shortened week, momentum funds continued flowing into equities and commodities ahead of delayed data forecasting strong third-quarter U.S. economic growth, with a predicted annualized rate of 3.2%. Analysts from BofA expressed caution, indicating that investor sentiment has reached extreme bullish levels, a precursor to previous market pullbacks.

While the fear of missing out spurred gains, caution remained regarding potential currency interventions from Tokyo. Meanwhile, the MSCI's broadest index of Asia-Pacific shares rose by 0.8%, and precious metals like silver and gold saw significant price increases. In commodities, oil prices edged up following U.S. interventions with Venezuelan oil shipments.

(With inputs from agencies.)