Market Analysis by covering: British Pound US Dollar, Gold Spot US Dollar, Silver Spot US Dollar, Nikkei 225. Read 's Market Analysis on Investing.com ...

Core Viewpoint - Japanese stocks are experiencing record highs following Prime Minister Sanae Takaichi's landslide victory, which is expected to lead to a weaker yen, rising equities, and higher government bond yields due to her dovish monetary policy stance and anticipated fiscal stimulus [1][3][4]. Group 1: Election Results and Market Reactions - Takaichi's Liberal Democratic Party (LDP) secured a supermajority with 316 seats, marking the largest election victory since World War Two, allowing her to push her legislative agenda more effectively [2]. - The Nikkei 225 index surpassed 57,000, reaching a record high, while the Topix index also hit an all-time peak of 3,825.67, exceeding pre-election expectations [4]. - Analysts believe the strong LDP win will enable more growth-friendly policies, boosting investor sentiment [4][5]. Group 2: Fiscal Policy and Bond Market Implications - Takaichi's victory is expected to revive the "Takaichi trade," characterized by a weaker yen and rising long-dated government bond yields, reflecting her dovish monetary policy [3]. - The yield on the 10-year Japanese government bond rose by 4 basis points to 2.27% following the election, indicating potential pressure on bonds due to increased government spending [6]. - Takaichi announced a record budget of 122 trillion yen for the upcoming financial year, marking a second consecutive year of record spending [6]. Group 3: Debt Concerns and Currency Movements - Japan's debt-to-GDP ratio is nearly 230%, making it the most indebted nation globally, which raises concerns about fiscal sustainability [7]. - Despite expectations of increased spending, Takaichi indicated that newly issued government bonds would remain below 30 trillion yen for the second consecutive year [13]. - Interestingly, the yen strengthened by 0.4% to 156.55 against the dollar after the election, reflecting Takaichi's commitment to fiscal sustainability [14].

Core Insights - Seven out of nine global indexes tracked have shown year-to-date gains as of January 26, 2026, with Japan's Nikkei 225 leading at a gain of 5.1% [2] - The BSE SENSEX from India has experienced the largest year-to-date loss at -4.3% [2] Index Performance - The global markets watchlist includes prominent indexes such as the S&P 500, TSX, FTSE 100, DAXK, CAC 40, Nikkei 225, Shanghai Composite, Hang Seng, and BSE SENSEX [1] - The current performance of these indexes is compared to their historical peaks, providing context on their current values and distance from all-time highs [3] Historical Context - A chart illustrates the performance of world markets since March 9, 2009, aligning various indexes to visualize relative performance from their respective lows [5] - Another chart provides a longer-term view starting from October 9, 2007, capturing the mid-point of market peaks for several indexes [6]

Group 1 - FXGT indicates that investors are facing a new round of risk asset deleveraging amid increased volatility in global financial markets [1][2] - The cryptocurrency market has nearly erased its gains from early 2026 due to significant shifts in capital flows caused by turmoil in traditional bond markets and geopolitical trade tensions [1][2] - Bitcoin has dropped 3% during a trading session, falling below the psychological level of $90,000, while Ethereum has seen a more significant decline of over 7%, breaking below the critical support level of $3,000 for the first time since early January [1][2] Group 2 - Bitcoin's market share has risen to 59.8%, indicating that altcoins are facing more severe liquidation pressures compared to mainstream tokens in an environment of extreme volatility [1][2] - Major stock indices, including the Nasdaq, have also shown poor performance, with the Nasdaq index down nearly 2% and European and Asian indices like Germany's DAX and Japan's Nikkei 225 recording declines of 1% to 2.5% [3] - In contrast, traditional precious metals have demonstrated strong safe-haven effects, with gold prices surging 3% and silver rising 7%, both reaching historical highs [3] Group 3 - FXGT concludes that Bitcoin has retraced most of its gains since early 2026, now only about 3% higher than its price at the beginning of the year, marking a critical technical decision point for the cryptocurrency market [4] - The market is expected to continue repricing "risk appetite" as volatility returns to normal levels [4] - Investors should focus on the strong premium of precious metals and the liquidity compression of crypto assets as core strategies to navigate market uncertainties in the coming weeks [4]

Core Insights - Eight out of nine global indexes tracked have shown year-to-date gains as of January 12, 2026, with China's Shanghai index leading at a gain of 5.0% [2] - The BSE SENSEX from India is the only index that has recorded a year-to-date loss of -1.6% [2] Index Performance - The global markets watchlist includes nine prominent indexes: S&P 500 (USA), TSX (Canada), FTSE 100 (UK), DAXK (Germany), CAC 40 (France), Nikkei 225 (Japan), Shanghai (China), Hang Seng (Hong Kong), and BSE SENSEX (India) [1] - The Shanghai index has the highest year-to-date gain at 5.0%, followed by the Hang Seng at 3.8% and the DAXK at 3.7% [2] Historical Context - A comparative performance chart illustrates the indexes' performance since March 9, 2009, aligning them to visualize relative performance effectively [5] - Another visualization starting from October 9, 2007, highlights the market peaks and provides context for the current index values [6]

Core Insights - All nine global indexes tracked have shown gains through December 15, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 30.6% [2] - The second and third positions are held by Canada's TSX with a gain of 26.5% and Japan's Nikkei 225 with a gain of 25.8% [2] - India's BSE SENSEX has the smallest year-to-date gain at 6.6% [2] Index Performance Context - A table is provided that compares each index's current value to its all-time peak, including the date of that peak and the distance from that record level [3] - Historical performance since March 9, 2009, is illustrated, showing the relative performance of world markets, with specific lows for various indexes [5] - A longer-term view starting from October 9, 2007, is also presented, highlighting the performance during a previous market peak [6]

Core Insights - All nine global indexes tracked have shown gains through December 1, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 31.7% [2] - The second and third positions are held by Canada's TSX with a 24.9% gain and Japan's Nikkei 225 with a 23.6% gain, while India's BSE SENSEX has the smallest gain at 7.1% [2] Index Performance - The performance of the indexes is compared to their historical peaks, providing context on their current values and how far they are from record levels [3] - A chart illustrates the comparative performance of world markets since March 9, 2009, with various indexes indexed to 800 on that date for visualization [5] - Another visualization starts from October 9, 2007, to show relative performance during a previous market peak [6] Market Context - The analysis includes a recent recession starting from February 3, 2020, to provide context on market performance during economic downturns [4] - The DAXK is tracked as a price-only index for consistency with other indexes that do not include dividends [8]

Core Insights - All nine global indexes tracked have shown gains through December 1, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 31.7% [2] - The second and third positions are held by Canada's TSX with a gain of 24.9% and Japan's Nikkei 225 with a gain of 23.6% respectively [2] - India's BSE SENSEX has the smallest year-to-date gain at 7.1% [2] Index Performance Context - A comparative performance chart illustrates the relative performance of world markets since March 9, 2009, with various indexes hitting their lows on different dates [5] - The performance visualization also includes a longer-term perspective starting from October 9, 2007, which was a previous closing high for the S&P 500 [6] - The DAXK is tracked as a price-only index for consistency with other indexes that do not include dividends [8]

Core Insights - All nine global indexes tracked have shown gains through November 24, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 31.2% [2] - The second and third positions are held by Canada's TSX with a gain of 22.9% and Japan's Nikkei 225 with a gain of 21.9% [2] - India's BSE SENSEX has the smallest year-to-date gain at 6.2% [2] Index Performance Context - A table is provided that compares each index's current value to its all-time peak, including the date of that peak and the distance from that record level [3] - Historical performance charts illustrate the comparative performance of world markets since significant lows, with specific start dates for various indexes [5][6] Additional Information - The DAXK is tracked as a price-only index for consistency with other indexes that do not include dividends [8]

Group 1 - The article provides a market analysis covering major indices such as S&P 500 and Nikkei 225, as well as the US Dollar Index Futures and iShares MSCI Japan ETF [1] Group 2 - The analysis includes insights on the performance trends of the S&P 500 and Nikkei 225, indicating their respective movements in the current market environment [1] - The US Dollar Index Futures are discussed in terms of their fluctuations and impact on global markets [1] - The iShares MSCI Japan ETF is evaluated for its performance relative to the Japanese market and investor sentiment [1]