Global Markets Surge Amid Tokyo Rally and Economic Optimism

Global stocks surged in Asian trade on Tuesday, primarily driven by an extended rally in Tokyo's markets following Japanese Prime Minister Sanae Takaichi's election victory. The MSCI Asia-Pacific index, excluding Japan, climbed 0.6%, while Japan's Nikkei 225 surged 2.3%, marking its third consecutive day of gains to reach a new peak.

The rise pushed the MSCI All-Country World Index 0.2% higher to a fresh record. However, U.S. equity futures showed signs of cooling after a two-day rally, with S&P 500 e-mini futures slipping 0.1%, partially retracting overnight gains. U.S. stocks had risen on Monday, with the S&P 500 and Nasdaq Composite benefiting from a resurgence in technology stocks.

Despite concerns, economic optimism persists, as noted by Kees Verbaas from Robeco, citing increasing corporate investment programs. Yet, upcoming U.S. economic data, including delayed payroll reports, could signal a slowdown in job growth. The U.S. dollar has weakened against multiple currencies amid Chinese regulatory concerns and fluctuating global markets.