Global Stocks Surge Amid Economic Uncertainty

Major stock indexes, including the Dow Jones, soared to record highs as U.S. retail sales data showed no growth in December, sparking hopes for potential Federal Reserve interest rate cuts. Meanwhile, Japan's Nikkei index jumped following Prime Minister Takaichi's victory, boosting investor optimism amidst global market movements.

Global stock markets saw a notable rise on Tuesday, with significant gains in major indexes such as the Dow Jones Industrial Average and MSCI's world equity index, both hitting record highs. This upward trend came despite flat U.S. retail sales figures for December, fueling speculation about possible interest rate cuts by the Federal Reserve.

Japan's Nikkei 225 index also experienced a boost, spurred by Prime Minister Sanae Takaichi's resounding election win over the weekend. Investors are optimistic that her plans for fiscal stimulus will promote economic growth, leading to unexpected rallies in both Japanese government bonds and the yen.

While the dollar weakened against major currencies, investor sentiment remained buoyant, with reassuring quarterly earnings results from key companies. In the meantime, the U.S. Treasury yields fell, and global economic dynamics, including employment figures set for release, continue to shape market expectations.

(With inputs from agencies.)