Asia Rises on Tech Gains as Europe Reacts to Spanish Election News
Asian stock markets showed gains on Monday, with Japan’s Nikkei 225 climbing 2.4% thanks to strong performance in the technology sector. Taiwan Semiconductor Manufacturing (TSMC) led the charge, rising 3% on speculation of a potential partnership with Elon Musk’s Terafab. Across the Pacific, the MSCI Asia Pacific share index also rose by 0.9%, reflecting broader regional optimism.
Meanwhile, European markets displayed mixed results, with Paris down 0.7% and Madrid up 1% after Spanish Prime Minister Pedro Sánchez announced early elections for November 29. The political uncertainty pushed the yield on Spanish 10-year bonds up to 4.12%, while the US 10-year Treasury yield remained elevated at 5.29%, raising concerns despite being below last week’s peak above 5.3%. US futures dipped slightly, following a strong Friday performance where the Nasdaq set a new intraday record.
Oil prices saw a slight decline, with WTI crude falling 0.45% to $90.7 per barrel, while Brent crude edged up 0.27% to $102.58. Tensions in the Middle East persisted after Houthi attacks on Saudi Aramco facilities, but oil markets remained relatively stable. In Milan, banking stocks like Intesa Sanpaolo and Banca Monte Paschi Siena (MPS) were closely watched as Intesa raised its bid for MPS, contingent on the Siena-based bank’s general meeting rejecting a merger with Banco BPM and Banca Generali.
Italy’s spread narrowed to 116 basis points, while the yield on 10-year BTPs fell to 4.66%. French OATs remained a concern, with yields at 4.87% and spreads widening to 147 points over German Bunds. Technoprobe and Bper Banca saw gains, while Amplifon, Fincantieri, Prysmian, and Snam declined. Webuild also raised its bid for Trevi Fin Ind to €5.165.