Global Markets Today: Nikkei 225 hits record high, Australia's ASX trades in green

Global Markets Today: Japan’s Nikkei 225 index surged more than 4 per cent to a record high on Monday after the ruling Liberal Democratic Party chose staunch conservative Sanae Takaichi as its new leader on Saturday, paving the way for her to become the nation’s first female prime minister.

Topix surged more than 3 per cent, reaching a record high.

Meanwhile, the Japanese yen slid 1.45 per cent to 149.59 per dollar. Japan’s 30-year government bond yield climbed over 10 basis points to 3.263 per cent, while the 20-year yield advanced more than six basis points to 2.674 per cent. The benchmark 10-year yield remained largely unchanged at around 1.659 per cent.

In Australia, the S&P/ASX 200 edged up 0.19 per cent.

Hong Kong’s Hang Seng Index was poised to open slightly higher, with futures at 27,153 compared to the prior close of 27,140.92.

China and South Korea markets were shut for holidays.

US stock market today

The S&P 500 managed to notch a record close in a choppy session on Friday, supported by expectations of rate cuts even as the U.S. government shutdown entered its third day.

The Dow Jones Industrial Average climbed 238.56 points, or 0.51 per cent, to 46,758.28, also ending at a record high, while the S&P 500 edged up just 0.44 points, or 0.01 per cent, to 6,715.79. In contrast, the Nasdaq Composite slipped 63.54 points, or 0.28 per cent, to 22,780.51.

The Federal Reserve reduced rates in September for the first time since December, responding to signs of labor market weakness. A report released Wednesday showed a 32,000 drop in private payrolls, alongside a revised 3,000 decline for August.

According to the CME Group’s FedWatch Tool, traders see a 25-basis-point cut at the Fed’s October meeting as nearly certain, with an 84% chance of another cut in December. While markets typically brush off government shutdowns, some analysts cautioned that a prolonged one could increase uncertainty for both investors and Fed policymakers.

(With inputs from agencies)

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