Global Markets Rise As Dollar Weakens

Global stock markets advanced on Monday as the U.S. dollar broadly weakened, though it strengthened against the yen, with investors reacting to political turbulence across several countries, Reuters reported.

In Argentina, President Javier Milei’s ruling party suffered a major electoral setback in Buenos Aires province, sending the peso to a record low—down as much as 7.5%—and dragging Argentine stocks more than 10% lower. Japan also faced political instability after Prime Minister Shigeru Ishiba resigned, pushing the yen down against the dollar as investors anticipated a potentially dovish successor.

France’s political outlook remained fragile, with Prime Minister François Bayrou at risk of defeat, stoking fears of economic paralysis in the eurozone’s second-largest economy. Meanwhile, in Indonesia, stocks erased early gains to close lower, even as the rupiah strengthened after Finance Minister Sri Mulyani Indrawati was ousted in a cabinet shake-up.

Weaker-than-expected U.S. labour data for August boosted expectations of a near-term Federal Reserve rate cut, sending Treasury yields down for a fourth straight day. MSCI’s global stock index rose 0.35% to 959.07, the pan-European STOXX 600 added 0.28%, and emerging market stocks climbed 0.58%. In Asia, MSCI’s broadest Asia-Pacific index outside Japan gained 0.67%, while Japan’s Nikkei jumped 1.45% to 43,643.81 points.

U.S. equities were mixed: the Dow slipped slightly, while the S&P 500 and Nasdaq rose 0.31% and 0.82% respectively, as traders looked ahead to key data later this week. Oil prices rebounded modestly, and gold surged past $3,600 an ounce, buoyed by bets the Fed will cut rates next week.

According to Reuters, investors are weighing economic optimism against mounting political risks, with currency shifts—particularly a softer dollar—boosting returns in overseas stock markets.