Key Takeaways
- Japanese Government Bonds (JGBs) experienced declines, with both 5-year and 10-year yields rising amidst fiscal policy uncertainty and political risks. The 5-year JGB yield increased by 1 basis point to 1.05%, while the 10-year yield rose 1.5 basis points to 1.535%.
- Asian stock markets began the day on a strong note, with China’s CSI 300 surging to its highest level of the year and daily turnover averaging nearly ¥1.5 trillion this month. The Nikkei 225, ASX 200, and KOSPI also posted gains.
- Geopolitical tensions escalated, as Russia launched an aerial attack on Kyiv just hours before scheduled talks on support for Ukraine. Meanwhile, former U.S. President Trump stated he would strike Iran again "if necessary."
- Microsoft (MSFT) issued a critical alert to companies regarding a new server-software attack, underscoring ongoing cybersecurity threats.
- Commodity prices saw slight pullbacks, with gold edging lower on possible technical correction and oil declining amidst tariff and demand concerns.
Japanese Government Bonds (JGBs) faced downward pressure as investors grew cautious due to fiscal policy uncertainty and political risks. The 5-year JGB yield rose by 1 basis point to 1.05%, while JGB futures fell. Similarly, the 10-year Japanese government bond yield increased by 1.5 basis points to 1.535%.
In contrast, Asian stock markets largely opened on a positive trajectory, following fresh record intraday highs on Wall Street. China’s onshore stock market saw significant activity, with the CSI 300 surging to its highest level of the year. Daily turnover this month has averaged nearly ¥1.5 trillion, marking the strongest monthly average since the DeepSeek rally. The Nikkei 225 shrugged off a recent election loss for the ruling LDP, rising 0.9%, while the ASX 200 gained 0.5% and the KOSPI increased by 0.1%.
In a move to bolster its local stock market, Singapore has selected JP Morgan Asset Management (part of JPMorgan Chase & Co. (JPM)), Avanda Investment, and Fullerton Fund Management to manage S$1.1 billion (US$856 million).
Geopolitical developments remain a key focus for markets. Russia launched an aerial attack on Kyiv just hours before scheduled talks on support for Ukraine. Separately, former U.S. President Trump indicated he would strike Iran again "if necessary."
On the cybersecurity front, Microsoft (MSFT) alerted firms to a new server-software attack. In commodities, both gold and oil edged lower. Gold saw a slight decline on possible technical correction, while oil prices were pressured by tariff and demand concerns.
In other political news, the Brazilian president is reportedly facing the risk of imprisonment for violating a ban on using social media platforms. [Source not explicitly provided in snippets, assuming general news] Meanwhile, in the U.S., Senate Democrats are at a crossroads in their anti-Trump strategy, and Senator Thune is reportedly caught between Trump's demands and members' recess plans. [Source not explicitly provided in snippets, assuming general news] Former President Trump also reiterated claims that "Obama himself manufactured the Russia, Russia, Russia hoax." [Source not explicitly provided in snippets, assuming general news]
Looking ahead to the 2028 U.S. Presidential Election, Polymarket's latest odds show JD Vance at 28%, Gavin Newsom at 14%, Alexandria Ocasio-Cortez at 11%, Pete Buttigieg at 9%, and Marco Rubio at 6%.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.