Global Stocks See Broad Gains Amid Positive Sentiment
Bangkok, Thailand – Global equity markets opened higher Tuesday, October 21, 2025, following a strong Wall Street rally on Monday. Investor sentiment was lifted as Japan’s Nikkei 225 edged closer to the symbolic 50,000 mark, coinciding with the historic appointment of Sanae Takaichi as Japan’s first female prime minister.
European markets saw mixed results: Germany’s DAX slipped 0.1% to 24,228.07, while France’s CAC 40 rose 0.1% to 8,214.58, and the FTSE 100 in London gained 0.2% to 9,422.48. Meanwhile, U.S. futures for the S&P 500 and Dow Jones Industrial Average were down slightly by 0.1%, indicating a cautiously optimistic outlook.
Japan’s Market Reaction to Takaichi’s Premiership
In Tokyo, the Nikkei 225 rose 0.3% to 49,316.06, after giving up earlier gains. Market analysts expect Takaichi to pursue market-friendly policies, including low interest rates and increased government spending, which could boost equities and domestic economic activity.
The Japanese yen strengthened slightly to 151.78 per U.S. dollar from 150.75 yen. However, if Takaichi succeeds in slowing interest rate hikes by the Bank of Japan, the yen may remain weak, potentially complicating inflation control efforts, currently above the central bank’s 2% target.
Strong Performance in Asia and China Trade Outlook
Asian markets saw robust gains, driven in part by optimism over upcoming U.S.-China trade talks:
- Hong Kong Hang Seng: +0.7% to 26,027.55
- Shanghai Composite: +1.4% to 3,916.33
- South Korea Kospi: +0.2% to 3,823.84
- Australia S&P/ASX 200: +0.7% to 9,094.70
- Taiwan Taiex: +0.2%
Investors remain hopeful that talks between U.S. President Donald Trump and Chinese President Xi Jinping later this month will ease tensions between the two largest global economies.
Wall Street Rally and Corporate Highlights
Monday’s U.S. stock market rally lifted major indices to near-record levels:
- S&P 500: +1.1%, within 0.3% of all-time highs
- Dow Jones Industrial Average: +1.1%
- Nasdaq Composite: +1.4%
Apple led gains with a 3.9% increase on strong demand for its latest iPhone design. Cleveland-Cliffs surged 21.5% after CEO Lourenco Goncalves announced potential deals with global steel producers and rare earth discoveries in Michigan and Minnesota. Amazon rose 1.6% despite a widespread cloud outage affecting users worldwide.
Corporate earnings remain in focus this week, with reports expected from Coca-Cola, Tesla, and Procter & Gamble, as companies aim to demonstrate continued profitability after a 35% rally in the S&P 500 since April.
Oil and Currency Movements
In commodity markets, U.S. crude oil rose 20 cents to $57.22 per barrel, while Brent crude increased 21 cents to $61.22 per barrel.
The euro declined slightly to $1.1624 from $1.1641 against the U.S. dollar, reflecting currency fluctuations amid global trade and monetary policy expectations.
Outlook for Investors
Investors are closely monitoring economic indicators, corporate earnings, and geopolitical developments. The combination of Takaichi’s pro-market policies, easing U.S.-China trade tensions, and strong corporate performance is supporting a cautiously optimistic global market environment.
Analysts warn that market volatility could remain high as central banks weigh inflation control against slowing job growth, highlighting the delicate balance in global financial markets heading into the final quarter of 2025.
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