Global Markets Rally on Easing Inflation Fears

Global stock markets opened higher on Monday, as inflation concerns eased and investors prepared for a week packed with key U.S. economic reports. Japan’s Nikkei 225 surged 2.4%, hitting a three-month high above 70,000 points before closing at 69,946.86. Meanwhile, European markets saw mixed results: France’s CAC 40 dropped 1.1%, Germany’s DAX barely moved, and Britain’s FTSE 100 gained 0.5%. U.S. futures for the S&P 500 and Dow Jones Industrial Average dipped slightly.

Investors remain optimistic as the latest U.S. jobs report eased fears of runaway inflation. The Federal Reserve’s recent rate hike, the first in three years, aimed to curb rising living costs. Analysts now believe another hike is less likely after last month’s smaller-than-expected job gains of 29,000. This week, traders will watch updates on U.S. services, unemployment, and consumer sentiment.

Artificial intelligence-related stocks attracted buyers, with Tokyo Electron soaring 5.5%, SoftBank Group rising 3%, and Taiwan Semiconductor Manufacturing Co. (TSMC) climbing 3%. Energy markets saw declines, with U.S. crude oil falling 1.7% to $89.57 a barrel, while Brent crude dropped 1.3% to $100.95. Oil prices have been volatile due to geopolitical tensions, particularly the war involving Iran.

In currency trading, the U.S. dollar weakened slightly against the yen, falling to 157.71 yen from 157.83. The euro also dipped to $1.1204 from $1.1257.