Nikkei Nears 50,000 on Takaichi-Fueled Stimulus Hopes; U.S. Tech Rallies Ahead of Bank Earnings; Germany Factory Orders Rebound
- Global equities are driven by optimism, particularly in Japan, where the Nikkei index is closing in on the 50,000 mark following the political certainty provided by Sanae Takaichi’s imminent confirmation as Prime Minister. The formation of the LDP-JIP coalition is fuelling investor bets on pro-growth fiscal stimulus and continued monetary accommodation, supported by a weak yen.
- U.S. futures are advancing as TSMC’s strong Q3 revenue and positive outlook are turbocharging the semiconductor and AI sectors, maintaining the “risk-on” mood ahead of major bank earnings this week. Easing of regional bank credit fears has also supported broader risk appetite.
- In Europe, the DAX has been boosted by Germany’s factory orders rebounding by 1.2% m/m in August, which signals a potential turning point for the struggling industrial sector. Sentiment is also being supported by German political moves towards deregulating the banking sector and major new defence and industrial spending plans, which provide a clear tailwind for key DAX sectors.

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