Asian Markets Surge Amid Japanese Political Shift and AI Investment Concerns

Asian markets surged on Monday following a decisive political win in Japan, boosting reflationary hopes. U.S. tech stocks rallied, while investors weighed the implications of AI spending. Mixed U.S. economic data may influence interest rate cuts. Global uncertainty persists with geopolitical tensions and domestic political shifts impacting commodities.

Asian markets surged on Monday after Japan's Prime Minister Sanae Takaichi's resounding electoral victory raised hopes for further reflationary policies. Investors also welcomed Wall Street's late rebound.

The technology sector led the rally, with significant gains in chip stocks and renewed interest in previously underperforming markets. Expectations of more rate cuts from the U.S. Federal Reserve fueled optimism for economic stimulus, amid upcoming data releases on jobs and inflation.

Elsewhere, global uncertainties persisted. Geopolitical tensions and domestic political developments influenced commodity prices, with oil markets awaiting U.S.-Iran talks and political instability affecting currencies like the pound.