Japan's ruling coalition suffered a devastating defeat in the election, leading to a decline in the yen and a surge in Japanese stocks. Oil prices plunged by 5% in early trading, as Israel launched a retaliatory attack on Iran in the early hours of the 26th.
The ruling coalition in Japan suffered a disastrous defeat in the election, and whether Shigeru Ishiba can continue to maintain political power has become the focus.
During a major earthquake in the political arena, Japanese stocks rose more than 2%, and the yen against the dollar briefly fell by nearly 1% to around 154. Analysts believe that the disastrous defeat of the ruling coalition is not surprising, as the market was prepared and had already priced in 60-80% of this outcome. Due to not being fully priced, the yen and Japanese stocks may come under pressure in the short term.
Most of the Asia-Pacific stock indexes rose, with India's main stock index up more than 1%, South Korea's Seoul Composite Index up nearly 1%, Indonesia's stock index down more than 1%, and Thailand and Vietnam's stock indexes slightly down.
Oil prices plummeted by 5% in early trading, with Brent crude and WTI both falling by over 4% currently. Israel launched retaliatory attacks on Iran in the early hours of the 26th, with the Israeli military saying it targeted missile arrays and other military facilities, achieving its objectives without mentioning attacking Iranian oil facilities.
This week, the market continues to focus on corporate earnings reports from Europe and the United States. Tech giants in the US stock market will release a wave of earnings reports, with five out of the Mag 7 including Google, Microsoft, Apple announcing their third-quarter earnings this week.
【13:35 Update】
Following the Japanese election, the yen against the dollar extended its decline, falling by nearly 1% at one point.
The Nikkei 225 index expanded by 2%. On October 28, according to Xinhua News Agency, in the 50th general election of the House of Representatives in Japan held on the 27th, the ruling coalition obtained 215 seats, failing to surpass half of the 465 seats in the House of Representatives. The electoral defeat means the ruling coalition has lost the right to speak in parliament, and whether Fumio Kishida can continue to maintain power has become the focus. Currently, Fumio Kishida has stated that he will not resign.
Most of the Asia-Pacific stock indexes rose, with India's main stock index up more than 1%, South Korea's Seoul Composite Index up nearly 1%, Indonesia's stock index down more than 1%, and Thailand and Vietnam's stock indexes slightly down.
Both Brent oil and WTI oil fell by over 4%.
According to Xinhua News Agency, the Israeli Defense Forces stated on the 26th that the Israeli military had completed "precise and targeted strikes" on multiple military targets in Iran, and the Israeli Air Force jets had safely returned to Israel. The Iranian military also stated on the same day that they successfully defended against the Israeli attack, with the Israeli operation causing "limited damage".
Due to the Israeli military strikes not hitting key oil and nuclear facilities, concerns about a further escalation in the Middle East situation have slightly eased.
Spot gold fell 0.4% intraday.