Core Viewpoint - Standard Chartered Bank forecasts that risk assets will perform well by 2026 due to easing global trade tensions, expansionary fiscal and monetary policies from major economies, and the growth of artificial intelligence [1] Investment Strategy - The bank recommends overweighting stocks and gold in the core investment portfolio, with a focus on technology, healthcare, and telecommunications sectors in China [1][2] - In terms of asset allocation, Standard Chartered suggests overweighting U.S., Indian, and Chinese stocks, emerging market bonds, and gold, while underweighting European, UK, and Japanese stocks [2] Bond Market Outlook - Standard Chartered views global bonds as a core holding, preferring government bonds over corporate bonds, and recommends overweighting emerging market government bonds [2] - For U.S. Treasury bonds, the bank believes that 5-7 year bonds will provide a balance between higher yields and managing fiscal and inflation risks [2] Stock Market Outlook - The bank maintains an overweight position on global stocks, favoring U.S. and Asian (excluding Japan) equities, supported by strong earnings growth and a soft landing expectation for the economy [2] - Chinese stocks are expected to benefit from improved corporate governance and targeted policy support for technology and innovation [2] Currency Outlook - Standard Chartered anticipates that the U.S. dollar index will peak around 100.5 in the next three months, with short-term support from cautious Fed policies and geopolitical risks [3] - Over the next 12 months, the structural support for the dollar is expected to weaken as the Fed shifts towards easing and other major central banks near the end of their rate hike cycles [3] Commodity Outlook - The bank maintains an overweight position on gold, with target prices of $4,350 and $4,800 per ounce for the next three and twelve months, respectively, driven by ongoing demand from emerging market central banks [3] - For crude oil, Standard Chartered expects prices to remain around $61 per barrel in the next three months and $60 per barrel in the next twelve months, with supply surplus limiting potential price rebounds from geopolitical risks [3]

Market Performance - The Nikkei 225 index surged over 4% on October 6, reaching a record high of 47,699.96 points, with an intraday increase of nearly 2,000 points [1] - The Tokyo Stock Price Index (TOPIX) also rose to a historical high, closing at 3,216.31, up 2.78% from the previous day [2][3] Individual Stock Performance - Notable gainers included: - Sumitomo Pharma, up 7.02%, with a market capitalization of 764 billion [4] - Yamaha Motor, up 4.90%, with a market capitalization of 1,177 billion [4] - Nissan Motor, up 4.34%, with a market capitalization of 1,393 billion [4] - Panasonic, up 4.18%, with a market capitalization of 4,339.6 billion [4] Currency and Bond Market - The USD/JPY exchange rate increased by 1.56% to 149.74 yen, while the EUR/JPY rate rose over 1% to 175.08 yen, marking the highest level since July 2024 [5][6] - The yield on 10-year Japanese government bonds rose by 0.5 basis points to 1.65% [7] Political Developments - On October 4, former Economic Security Minister Sanae Takaichi won the ruling Liberal Democratic Party's presidential election, potentially becoming Japan's first female Prime Minister [8] - Takaichi supports expansionary fiscal and monetary policies, which may raise concerns about increased bond supply and lower expectations for a Bank of Japan rate hike in December [9]

Group 1 - London spot gold maintains strong momentum, breaking above $3900 per ounce, reaching a peak of $3920.77 per ounce, marking a new historical high [1] - The Nikkei 225 index opened high, surpassing 47000 points, and continued to rise, gaining over 4% to close at 47685.93 points; the Tokyo Stock Exchange index also rose over 3% to 3224.27 points, both indices setting historical highs [1] - The Japanese yen against the US dollar opened lower at 149.522, continuing its weak trend, influenced by the election of the first female president of the Liberal Democratic Party, who supports loose fiscal and monetary policies, raising concerns about increased bond supply [1]