Global Markets Surge as China's Stimulus Spurs Growth, Yen Firms on Japan PM Shake-Up

China's economic stimulus measures have propelled global stocks to record highs. The Japanese yen strengthened as Shigeru Ishiba emerged as Japan's next likely prime minister. Meanwhile, futures indicated a weaker open on Wall Street, with investors focusing on key inflation data and interest rate actions from global central banks.

China's massive stimulus measures have driven global stocks to unprecedented highs, while the yen soared against the dollar following Shigeru Ishiba's likely ascent to Japan's prime ministership. Europe's STOXX 600 index climbed by 0.3%, hitting a record, with significant gains seen in major indexes like Germany's DAX, France's CAC 40, and the UK's FTSE 100.

On Wall Street, futures anticipated a slightly weaker start following a record high for the S&P 500. Investors are eagerly awaiting the Fed's favored inflation gauge, the core PCE price index. The dollar reversed earlier gains, falling by 1.4% to 142.78 yen after Ishiba, who supports the BOJ's policy direction, won the leadership of Japan's ruling party.

China's stimulus actions also boosted sentiment. MSCI's world stocks index rose 0.3%, with China's blue chips seeing a 4.5% increase. Financial markets are watching closely for further fiscal measures from Beijing, which could influence global growth. Commodities such as iron ore and copper also saw gains, though oil prices dropped on reports of increased Saudi production.