Markets Soar After Takaichi Win, AI Deal Lifts Stocks

Asian equities and the MSCI Asia Pacific index hit fresh records as technology and chip stocks rallied after reports of Advanced Micro Devices’ deal with OpenAI and large investments by Nvidia, lifting markets across the region. Japan’s Nikkei climbed to all‑time highs and the yen plunged after Sanae Takaichi’s surprise election as leader of the ruling LDP, with investors pricing in more fiscal stimulus, higher long‑tenor JGB yields and greater government debt supply. Long‑dated JGB yields jumped even as short‑dated yields eased, and automakers and electronics stocks also led gains amid shifting risk appetite. Gold neared $4,000 and Bitcoin climbed to new peaks as investors sought havens amid a US government shutdown standoff, political turmoil in Europe and broader geopolitical risks. Analysts warned optimism may be premature given uncertainty over cabinet appointments, the LDP's parliamentary position, Bank of Japan timing and whether proposed stimulus plans can be implemented, and some cautioned that the AI‑driven frenzy around chips and data centers could be creating a speculative bubble.