Japan Election Boosts Asian Gains; US Futures Downtrend as Fed Policy Outlook Looms

Asian markets rose Monday on Sanae Takaichi’s LDP election victory, providing political stability. Nikkei 225 up 4.00%, Hang Seng +1.76%, Kospi +4.10%, SSE Composite +1.41%. Europe was mixed at midday CET: STOXX Europe 600 flat; CAC 40 -0.35%, FTSE 100 -0.15%, DAX +0.18%, IBEX 35 +0.44%. Precious metals climbed—gold up 0.72% to above $5,000/oz, silver +2.00% to ~$79/oz. US futures trended lower as traders await the New York session. The yen strengthened following the election. Global attention shifts to US economic data: January jobs report (expected +60K) and CPI (estimated 2.5% annual) Wednesday and Friday. Federal Reserve governors, including Christopher Waller and Stephen Moore, speak this week. The next Fed Chair, Kevin Warsh, is expected to advocate for lower policy rates and a reduction in the Fed's balance sheet.