The S&P/ASX 200 is down 0.34% (31 points) as markets assess the surprise election of Sanae Takaichi, as Japan’s new Prime Minister and what her victory might mean for fiscal stimulus in the region.
Media reporting has tagged the one-time rock drummer as the country’s new ‘Iron Lady,’ a reference to former UK Prime Minister, Margaret Thatcher.
Wall Street closed mixed overnight, with the Dow down around 0.2% and the S&P 500 and Nasdaq moderating after tech companies pulled back from record highs. In Europe, London’s FTSE and Germany’s DAX posted modest gains, supported by financials and industrials.
In Tokyo, equities jumped on hopes that Takaichi will revive aggressive stimulus reminiscent of “Abenomics”. The yen weakened past ¥150 ($1.49) to the US dollar, boosting exporter sentiment and inflows into Japanese equities.
The Australian dollar is weaker this morning, trading around US$0.66, as regional volatility and currency flows ripple into domestic markets.
Gold remains the standout story, hovering near US$4,000 per ounce after a 50% surge over the past year. According to Gemma Dale, NABTRADE Director of SMSF and Investor Behaviour, the rally has drawn in two distinct groups of investors.
“We are seeing significant increases in investor exposure, with younger and long-term investors looking at gold as a defensive asset and store of wealth,” Dale said.
“This resurgence is notable after gold fell out of favour for decades.”
Crude oil is mixed with West Texas Intermediate (WTI) trading around US$63 per barrel, while Brent sits higher, reflecting ongoing supply and geopolitical considerations.The iron ore spot price remains firm at US$104 per tonne, while bitcoin is steady at $121,675.
Write to Dan Petrie at Mining.com.au
Images: Mining.com.au
