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Global stocks steadied Tuesday and gold hovered around a fresh high as investors retreated to safety amid a US government shutdown and French political upheaval. French shares edged back up while the euro held losses as President Emmanuel Macron called on outgoing Prime Minister Sebastien Lecornu to salvage his administration. Lecornu, who resigned Monday after under a month in the post, was tasked with gaining cross-party support for a cabinet lineup to pull France out of political deadlock.London and Frankfurt both rose in midday deals. Gold hit a fresh peak of $3,977.44 an ounce Tuesday, before slightly paring gains, as investors eyed the US government shutdown, with Republicans and Democrats appearing no closer to an agreement.Bets on the Federal Reserve cutting interest rates this month and the political crisis in France are adding to the allure of the safe-haven asset.”The rally in gold is part of the ‘debasement’ trade,” said Kathleen Brooks, research director at trading group XTB. “This trading theme is driving demand for alternative assets such as gold and crypto, as the dollar faces a long-term decline and fiscal concerns continue to rise around the world,” she added.In Asia, Tokyo eked out another record following the weekend election of a pro-stimulus advocate to lead Japan’s ruling party, before paring gains to close flat.Hong Kong and Shanghai were closed for holidays.The election of Sanae Takaichi — expected to become Japan’s prime minister this month — ramped up optimism that she will kick-start the economy through stimulus measures.That sent the Nikkei 225 soaring almost five percent Monday and hammered the yen as investors began questioning the likelihood that the Bank of Japan will continue its interest rate hikes.Takaichi’s victory “removes uncertainty about the country’s policy direction”, said Saxo Markets’ chief investment strategist, Charu Chanana.”Her agenda is expected to continue a blend of fiscal support and ultra-easy monetary policy,” she added.Yields on 30-year Japanese bonds hit their highest level, reflecting fears the country’s already colossal debt will balloon further.A series of AI-related deals has fuelled optimism for tech stocks, driving several global markets to fresh highs this year.The latest was an announcement on Monday by Advanced Micro Devices and OpenAI of a partnership to develop AI data centres, which led the S&P 500 and Nasdaq to surge to fresh records in New York.While there are growing worries that huge investments in AI by firms have gone too far, OpenAI’s Fidji Simo told AFP she did not consider it a bubble.”I see that as a new normal, and I think the world is going to really switch to realising that computing power is the most strategic resource,” said Simo, chief operating officer of OpenAI’s applications, including its flagship model ChatGPT.- Key figures at around 1045 GMT -London – FTSE 100: UP 0.1 percent at 9,486.53 pointsParis – CAC 40: UP 0.3 percent at 7,997.84Frankfurt – DAX: UP 0.2 percent at 24,423.68Tokyo – Nikkei 225: FLAT at 47,950.88 (close)Hong Kong – Hang Seng Index: Closed for a holidayShanghai – Composite: Closed for a holidayNew York – Dow: DOWN 0.1 percent at 46,694.97 (close)Euro/dollar: DOWN at $1.1674 from $1.1713 on MondayPound/dollar: DOWN at $1.3439 from $1.3485Dollar/yen: UP at 150.75 yen from 150.24 yenEuro/pound: UP at 86.87 pence from 86.86 penceBrent North Sea Crude: DOWN 0.2 percent at $65.38 per barrelWest Texas Intermediate: DOWN 0.2 percent at $61.60 per barrel

The dizzying investments in artificial intelligence infrastructure do not constitute a bubble but rather represent today’s “new normal” to meet skyrocketing user demand, Fidji Simo, OpenAI’s de facto number two, said on Monday.The French-born executive made her comments in an interview with AFP, her first since taking up her role as Chief Operating Officer of OpenAI’s applications, including its flagship model ChatGPT.In the past few weeks, her company, under the leadership of CEO Sam Altman, has made a series of huge investments in data centers and AI chips, despite no real signs that the fast-emerging AI business is close to breaking even.The answers were lightly edited for length and clarity.- Is the AI investment frenzy a bubble right now? -What I am seeing here is a massive investment in compute (or computing power), with us meeting that need for computing power so incredibly badly for a lot of use cases that people want. [Video AI generator] Sora is a great example right now — there’s much more demand than we can serve.From that perspective, I really do not see that as a bubble. I see that as a new normal, and I think the world is going to switch to realizing that computing power is the most strategic resource.- What do you say to those who fret over AI’s dangers? -I see my job as really making sure that the good side of this technology happens and we mitigate the bad side.Take mental health, for example. I’m hearing tons of users say that they go to ChatGPT for advice in tough moments where they may not have other people to talk to. Many people can’t afford to go to a therapist. I talk to a lot of parents who are telling me: God, I got this really awesome advice that helped me unlock a situation with my child. But at the same time, we need to make sure that the model behaves as expected.On mental health, we have announced a very robust roadmap. We started with parental controls. We have plans to launch age prediction: if we can predict that the user is a teenager, we give them a model that is less permissive than we would give to an adult.Jobs are also very much on my mind, and it’s a similar approach. AI is going to create a lot of jobs, like prompt engineering, that absolutely did not exist before. At the same time, there are some professions that are going to be directly impacted, and we see our role as helping with the transition.- What are the next steps toward intelligent AI? -I think the breakthroughs are about models understanding your goals and helping accomplish them proactively.Not just give you a good answer to a question, not just have a dialog, but actually tell you, ‘Oh, okay, you’re telling me that you want to spend more time with your wife. Well, there might be some weekend getaways that would be helpful, and I know it’s a lot to plan, so I’ve already done all the planning for you and I’ve already made some reservations. Just tap one button to approve and everything gets done.’We’re still very early, but we’re on that journey to capture that.- In San Francisco, you sometimes hear: ‘America innovates, China copies, Europe regulates’ -As a European, every time I hear this saying, my heart breaks a bit. I think there has certainly been a tendency in Europe to focus on regulation a little too much.On China, we continue to be extremely focused on continuing to have a lead, because we see China continuing to invest heavily in being competitive — whether in terms of innovation or in terms of computing — and so we think it’s incredibly important to continue investing across a democratic bloc to advance AI that has these [democratic] values.- Do you let your child use ChatGPT? -ChatGPT is not supposed to be for under 13, but my kid is 10 — I still let her use it under supervision. It’s magical to see what she’s able to create. Just this weekend, she was telling me about creating a new business. She was using ChatGPT to make banners for the new business, to create taglines.In our childhood, we couldn’t turn our imagination into something real that fast. And I see that really giving her superpowers, where she thinks anything is possible.

Torrential rains that triggered deadly landslides and floods in India’s Darjeeling region also destroyed swathes of premier tea estates, officials said Tuesday.The deluge wiped out around five percent of Darjeeling’s renowned tea gardens, delivering a heavy blow in a district that has become synonymous with the leaf itself.”The flood has dealt a massive blow to the tea gardens,” Rajkumar Mondal, chairman of the Indian Tea Association’s Dooars Chapter, told AFP.More than 950 hectares of tea plantations in Darjeeling’s hills, known for producing high-quality brews with a protected Geographical Indication, “suffered drastic losses due to flooding”, he said.Darjeeling produces around 10,000 tonnes of tea each year across 17,500 hectares, according to the Tea Board of India.The damage is another indication of how the intensity and unpredictability of rainfall in recent years reflect the worsening impact of climate change on Himalayan tea-growing regions.Mondal said Darjeeling received over 261 mm (10 inches) of rain on Saturday.”It’s unprecedented — I have never experienced such a disaster in my life”, he said, adding rains struck just ahead of a “new flush”, the harvest of the finest young leaf tips.”As the flood water receded, we have seen silt soil on the tea plants… it’s a costly affair to remove.”Monsoon downpours, which began on October 3, have eased.- Trail of devastation -But they left a trail of devastation, washing away roads and triggering landslides across West Bengal state.Regional Meteorological Centre (RMC) scientist Sourish Bandopadhyay said the sudden rains were caused by “an unexpected change in the trajectory of a low-pressure system”, bringing the intense rains.”It’s a sign of climate change in the region,” he said.Praween Prakash, superintendent of police for Darjeeling, said at least 36 people have died, up from an earlier toll of 28.Landslides destroyed more than 500 houses, forcing hundreds into temporary shelters, while tourists trapped by floodwaters were rescued by earthmovers, officials said.India’s tea industry is feeling the growing impact of climate change, with rising temperatures and unpredictable weather hurting both yields and quality, according to the Tea Board.Intense downpours cause waterlogging and soil erosion, while longer dry spells have forced tea estates to rely on irrigation to sustain crops, it says.Growers are also reporting new pests and diseases, with estates forced to use more fertilisers and pesticides to protect plants and maintain soil fertility.India’s tea industry employs more than one million workers directly, with another million in supporting jobs.The country is the world’s second-largest producer, and third-largest black tea exporter.It shipped nearly 255,000 metric tonnes abroad in 2024, earning about 71 billion rupees ($850 million), according to official data.

The dizzying investments in artificial intelligence infrastructure do not constitute a bubble but rather represent today’s “new normal” to meet skyrocketing user demand, Fidji Simo, OpenAI’s de facto number two, said on Monday.The French-born executive made her comments in an interview with AFP, her first since taking up her role as Chief Operating Officer of OpenAI’s applications, including its flagship model ChatGPT.In the past few weeks, her company, under the leadership of CEO Sam Altman, has made a series of huge investments in data centers and AI chips, despite no real signs that the fast-emerging AI business is close to breaking even.The answers were lightly edited for length and clarity.- Is the AI investment frenzy a bubble right now? -What I am seeing here is a massive investment in compute (or computing power), with us meeting that need for computing power so incredibly badly for a lot of use cases that people want. [Video AI generator] Sora is a great example right now — there’s much more demand than we can serve.From that perspective, I really do not see that as a bubble. I see that as a new normal, and I think the world is going to switch to realizing that computing power is the most strategic resource.- What do you say to those who fret over AI’s dangers? -I see my job as really making sure that the good side of this technology happens and we mitigate the bad side.Take mental health, for example. I’m hearing tons of users say that they go to ChatGPT for advice in tough moments where they may not have other people to talk to. Many people can’t afford to go to a therapist. I talk to a lot of parents who are telling me: God, I got this really awesome advice that helped me unlock a situation with my child. But at the same time, we need to make sure that the model behaves as expected.On mental health, we have announced a very robust roadmap. We started with parental controls. We have plans to launch age prediction: if we can predict that the user is a teenager, we give them a model that is less permissive than we would give to an adult.Jobs are also very much on my mind, and it’s a similar approach. AI is going to create a lot of jobs, like prompt engineering, that absolutely did not exist before. At the same time, there are some professions that are going to be directly impacted, and we see our role as helping with the transition.- What are the next steps toward intelligent AI? -I think the breakthroughs are about models understanding your goals and helping accomplish them proactively.Not just give you a good answer to a question, not just have a dialog, but actually tell you, ‘Oh, okay, you’re telling me that you want to spend more time with your wife. Well, there might be some weekend getaways that would be helpful, and I know it’s a lot to plan, so I’ve already done all the planning for you and I’ve already made some reservations. Just tap one button to approve and everything gets done.’We’re still very early, but we’re on that journey to capture that.- In San Francisco, you sometimes hear: ‘America innovates, China copies, Europe regulates’ -As a European, every time I hear this saying, my heart breaks a bit. I think there has certainly been a tendency in Europe to focus on regulation a little too much.On China, we continue to be extremely focused on continuing to have a lead, because we see China continuing to invest heavily in being competitive — whether in terms of innovation or in terms of computing — and so we think it’s incredibly important to continue investing across a democratic bloc to advance AI that has these [democratic] values.- Do you let your child use ChatGPT? -ChatGPT is not supposed to be for under 13, but my kid is 10 — I still let her use it under supervision. It’s magical to see what she’s able to create. Just this weekend, she was telling me about creating a new business. She was using ChatGPT to make banners for the new business, to create taglines.In our childhood, we couldn’t turn our imagination into something real that fast. And I see that really giving her superpowers, where she thinks anything is possible.

Brazilian President Luiz Inacio Lula da Silva urged US President Donald Trump to lift punitive trade tariffs in their first official talks Monday after months of animosity — with both suggesting an in-person meeting in the near future.The two leaders spoke for 30 minutes in a “friendly tone” and Lula raised the possibility of a meeting in Malaysia next month, the Brazilian presidency said in a statement.Lula “requested the removal” of tariffs imposed on his country’s products and sanctions against Brazilian officials.Trump hailed “a very good telephone call” in a post on Truth Social.”We will be having further discussions, and will get together in the not too distant future, both in Brazil and the United States,” he said, without adding details.Ties have soured between Washington and Brasilia in recent months, with Trump angered over the trial and conviction of his ally, the far-right former president Jair Bolsonaro.Trump has imposed a 50-percent tariff on Brazilian products and imposed sanctions against several top officials, including a top Supreme Court judge, to punish Brazil for what he termed a “witch hunt” against Bolsonaro. “We are very optimistic that we will move toward a win-win situation in this relationship,” said Brazil’s Vice President Geraldo Alckmin, who has been tasked with continuing negotiations with US Secretary of State Marco Rubio.He noted the call had gone “even better than we expected” and that the two presidents had exchanged personal phone numbers.- ‘Excellent chemistry’ -The phone call came after what first appeared to be a chance encounter on the sidelines of the UN General Assembly last month that led Trump to hail his “excellent chemistry” with Lula.However the Estadao news site reported the brief run-in, which included a hug, was actually the result of an intensive behind-the-scenes “diplomatic operation.”In a speech to the UN, Lula slammed an “unacceptable” attack on the independence of Brazil’s judiciary.Despite the political and economic pressure, Brazil’s Supreme Court sentenced Bolsonaro to 27 years in prison for his role in a botched coup bid after his 2022 election loss to Lula.Trump, meanwhile, used his UN speech to accuse Brazil of “censorship, repression” and “judicial corruption.”He later switched tack, and recounted his run-in with Lula, describing him as “a very nice man, actually.”The two men stand on polar opposite sides when it comes to issues such as multilateralism, international trade and the fight against climate change.The Brazilian presidency said that Lula had raised the possibility with Trump of an in-person meeting at the Association of Southeast Asian Nations (ASEAN) summit in Malaysia in October.He also re-iterated an invitation to Trump to attend the COP-30 climate conference in Brazil’s Amazon city of Belem in November, “and also expressed his willingness to travel to the United States.”- ‘No one to talk to’ -Lula has repeatedly stated that Brazil was “ready to negotiate” regarding tariffs, but lamented there was “no one to talk to” in Washington.A Brazilian government source told AFP the private sector played a key role behind the scenes in the rapprochement with Washington, citing a meeting between Trump and Brazil’s billionaire beef tycoon Joesley Batista at the White House.Batista’s “JBS played an important role, but it wasn’t the only one,” said the source. A European diplomat told AFP on condition of anonymity that Brazilian aircraft manufacturer Embraer had also put pressure on the White House.Trump’s tariffs mainly target major Brazilian exports beef, coffee and sugar.Brazilian trade data for September, released Monday, showed that exports to the United States fell 20.3 percent compared with last year, while imports from the US rose 14.3 percent.However, Brazil has other major markets, such as Asia, for its beef and coffee, and has been expanding to diversify its exports.Overall exports grew 7.2 percent in September, with major growth in China, India, Singapore, Argentina, Peru and Panama.

Stock markets were mixed Monday as a deepening political crisis in France sent Paris into a tailspin while a new Japanese ruling party leader boosted Tokyo and the AI investment boom lifted US stock indices to fresh heights.Gold pushed ever closer to $4,000 an ounce as the US government shutdown and expected interest cuts from the Federal Reserve boosted the precious metal’s lure.The euro fell against main rivals and French borrowing costs spiked as Sebastien Lecornu, who had been prime minister for less than a month, resigned just 14 hours after naming a largely unchanged cabinet.But in another twist, French President Emmanuel held new talks with Lecornu in the evening and gave him two days to reach a plan for the country’s “stability”, the president’s office said.Paris finished down 1.4 percent. Shares in French banks BNP Paribas, Societe Generale and Credit Agricole all shed more than three percent.London also dipped but Frankfurt’s stock exchange ended the day flat.On Wall Street, both the S&P 500 and tech-heavy Nasdaq Composite surged to fresh records, after Advanced Micro Devices announced a multi-year partnership with OpenAI to develop AI data centers, sending AMD shares up more than 23 percent.The OpenAI venture with AMD marks the latest massive deal for the fast-growing artificial intelligence startup that has left markets buzzing. “Very few questions are being asked about how OpenAI is actually going to pay for this commitment that they’re making to AMD,” said Steve Sosnick of Interactive Brokers.”This company has literally hundreds of billions of dollars in commitments, but still only has annualized revenues of about $12 billion,” Sosnick said of OpenAI. “The market is taking any piece of news as purely good news.”Tesla also had a good day, rising 5.5 percent on buzz over a possible product launch after Elon Musk’s company posted videos teasing a Tuesday announcement.In Asia, Tokyo surged almost five percent to a record high and the yen sank on bets the new leader of Japan’s ruling party will loosen monetary policy to kickstart the economy.Sanae Takaichi, likely to become Japan’s prime minister this month, has previously backed aggressive monetary easing and expanded government spending.Traders are “enthused by the new Japanese leader, who promises to reignite stimulus to light a fire under the Japanese economy,” said Chris Beauchamp, chief market analyst at trading platform IG.The yen weakened more than one percent against the dollar and hit a record low against the euro.Yields on 30-year Japanese bonds rose sharply reflecting fears the country’s already colossal debt will balloon further.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries.”She has said that the Bank of Japan should not raise interest rates, which is feeding demand for stocks and weighing on long term bond yield,” said Kathleen Brooks, research director at trading group XTB.”The decline in the yen is also a sign that the market is pricing out the prospect of BoJ rate hikes this year,” she added.- Key figures at around 2015 GMT -New York – Dow: DOWN 0.1 percent at 46,694.97 (close)New York – S&P 500: UP 0.4 percent at 6,740.28 (close)New York – Nasdaq Composite: UP 0.7 percent at 22,941.67 (close)London – FTSE 100: DOWN 0.1 percent at 9,479.14 (close)Paris – CAC 40: DOWN 1.4 percent at 7,971.78 (close)Frankfurt – DAX: FLAT at 24,378.29 (close)Tokyo – Nikkei 225: UP 4.8 percent at 47,944.76 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,957.77 (close)Shanghai – Composite: Closed for a holidayEuro/dollar: DOWN at $1.1713 from $1.1742 on FridayPound/dollar: UP at $1.3485 from $1.3480Dollar/yen: UP at 150.24 yen from 147.47 yenEuro/pound: DOWN at 86.86 pence from 87.10  penceWest Texas Intermediate: UP 1.3 percent at $61.69 per barrelBrent North Sea Crude: UP 1.5 percent at $65.47 per barrelburs-jmb/dw

Stock markets diverged Monday as a deepening political crisis in France sent Paris into a tailspin while a new Japanese ruling party leader buoyed shares in Tokyo.Gold pushed ever closer to $4,000 an ounce as the US government shutdown and expected interest cuts from the Federal Reserve boosted the precious metal’s attractiveness.The euro fell against main rivals and French borrowing costs spiked as Sebastien Lecornu, who had been prime minister for less than a month, resigned just 14 hours after naming a largely unchanged cabinet.France’s “fractured parliament is making it nearly impossible to pass a budget that reduces the fiscal deficit”, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.”With government borrowing running at more than five percent of GDP and the debt ratio rising, the risk premium on French government bonds will continue to widen,” he added.Shares in French banks BNP Paribas, Societe Generale and Credit Agricole all shed more than three percent.London also dipped but Frankfurt’s stock exchange ended the day flat.On Wall Street, both the S&P 500 and tech-heavy Nasdaq Composite sat next to record highs as AI deals overshadowed concerns over a government shutdown that dragged into a second week.Shares in Advanced Micro Devices (AMD) jumped more than 33 percent after the chipmaker announced a multi-year partnership with OpenAI to develop AI data centres which should bring it tens of billions of dollars in new revenue over the next five years.In Asia, Tokyo surged almost five percent to a record high and the yen sank on bets the new leader of Japan’s ruling party will loosen monetary policy to kickstart the economy.Sanae Takaichi, likely to become Japan’s prime minister this month, has previously backed aggressive monetary easing and expanded government spending.Traders are “enthused by the new Japanese leader, who promises to reignite stimulus to light a fire under the Japanese economy,” said Chris Beauchamp, chief market analyst at trading platform IG.The yen weakened more than one percent against the dollar and hit a record low against the euro.Yields on 30-year Japanese bonds rose sharply reflecting fears the country’s already colossal debt will balloon further.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries.”She has said that the Bank of Japan should not raise interest rates, which is feeding demand for stocks and weighing on long term bond yield,” said Kathleen Brooks, research director at trading group XTB.”The decline in the yen is also a sign that the market is pricing out the prospect of BoJ rate hikes this year,” she added.Oil prices jumped nearly one percent after OPEC+ agreed at the weekend to boost supplies by 137,000 barrels a day — less than initially expected.”The limited supply adjustment was seen as a supportive move that would help offset a glut in the oil market while still signalling confidence in global demand levels,” said Trade Nation analyst David Morrison.- Key figures at around 1530 GMT -New York – Dow: DOWN 0.1 percent at 46,696.12 pointsNew York – S&P 500: UP 0.3 percent at 6,736.19 New York – Nasdaq Composite: UP 0.5 percent at 22,902.72London – FTSE 100: DOWN 0.2 percent at 9,479.14 (close)Paris – CAC 40: DOWN 1.4 percent at 7,971.78 (close)Frankfurt – DAX: FLAT at 24,378.29 (close)Tokyo – Nikkei 225: UP 4.8 percent at 47,944.76 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,957.77 (close)Shanghai – Composite: Closed for a holidayEuro/dollar: DOWN at $1.1711 from $1.1742 on FridayPound/dollar: DOWN at $1.3474 from $1.3482Dollar/yen: UP at 150.09 yen from 147.45 yenEuro/pound: DOWN at 86.92 pence from 87.09 penceWest Texas Intermediate: UP 1.3 percent at $61.64 per barrelBrent North Sea Crude: UP 1.4 percent at $65.41 per barrelburs-rl/ach 

Stock markets diverged Monday, with Paris dropping as France plunged further into political crisis after the prime minister’s resignation, while Tokyo surged on new leadership of its ruling party.Gold pushed on with its rise close to $4,000 an ounce as the US government shutdown and expected interest cuts from the Federal Reserve boosted the precious metal’s attractiveness.The euro fell against main rivals and French borrowing costs spiked as Sebastien Lecornu resigned after less than a month in office and shortly after unveiling a largely unchanged cabinet. France’s “fractured parliament is making it nearly impossible to pass a budget that reduces the fiscal deficit”, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.”With government borrowing running at more than five percent of GDP and the debt ratio rising, the risk premium on French government bonds will continue to widen,” he added.Shares in French banks BNP Paribas, Societe Generale and Credit Agricole all shed more than four percent in midday trading.Elsewhere, London and Frankfurt stock markets edged higher nearing the half-way mark, after Hong Kong closed lower.Tokyo surged almost five percent to a record high and the yen sank on bets the new leader of Japan’s ruling party will loosen monetary policy to kickstart the economy.Sanae Takaichi, likely to become Japan’s prime minister this month, has previously backed aggressive monetary easing and expanded government spending.The yen weakened more than one percent against the dollar and hit a record low against the euro.Yields on 30-year Japanese bonds rose sharply reflecting fears the country’s already colossal debt will balloon further.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries.”She has said that the Bank of Japan should not raise interest rates, which is feeding demand for stocks and weighing on long term bond yield,” said Kathleen Brooks, research director at trading group XTB.”The decline in the yen is also a sign that the market is pricing out the prospect of BoJ rate hikes this year,” she added.US futures were all up on Monday, even as the closure of parts of the US government dragged into a second week.Federal agencies have been out of money since Wednesday — with several public services crippled — as a result of deadlocked talks over funding.The row meant key jobs data used by the Federal Reserve to guide it on monetary policy was not released as normal on Friday.Still, observers said recent reports indicating the labour market is slowing would likely be enough to cut rates at the next meeting at the end of the month, with other readings on inflation due beforehand. Bitcoin hit a new peak of $125,689 on Sunday. Oil jumped more than one percent after OPEC+ agreed at the weekend to boost supplies by 137,000 barrels a day — less than initially expected.- Key figures at around 1100 GMT -London – FTSE 100: UP 0.1 percent at 9,502.54 pointsParis – CAC 40: DOWN 1.3 percent at 7,975.29Frankfurt – DAX: UP 0.2 percent at 24,423.01Tokyo – Nikkei 225: UP 4.8 percent at 47,944.76 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,957.77 (close)Shanghai – Composite: Closed for a holidayNew York – Dow: UP 0.5 percent at 46,758.28 points (close)Euro/dollar: DOWN at $1.1662 from $1.1742 on FridayPound/dollar: DOWN at $1.3423 from $1.3482Dollar/yen: UP at 150.29 yen from 147.45 yenEuro/pound: DOWN at 86.88 pence from 87.09 penceWest Texas Intermediate: UP 1.4 percent at $61.70 per barrelBrent North Sea Crude: UP 1.4 percent at $65.40 per barrel

Tokyo stocks surged almost five percent to a record high Monday and the yen sank on bets that the new leader of Japan’s ruling party will embark on a new era of loose monetary policy to kickstart the country’s economy.The gains, however, came on a mixed day for the rest of Asia, while Paris tumbled more than two percent on news that France’s newly appointed prime minister had stepped down, compounding a political crisis in the country.News of the victory for Sanae Takaichi — who is expected to become prime minister this month — fanned a fresh wave of optimism on Japanese trading floors as she has previously backed aggressive monetary easing and expanded government spending.Expectations the Federal Reserve will cut interest rates this month continue to support risk assets, with the S&P 500 and Dow both hitting peaks along with bitcoin and gold.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries.Takaichi “looks more inclined than the others to juice the economy”, said Taro Kimura at Bloomberg Economics.”Still, with inflation rising and long-term (bond) yields climbing, she will have to balance her stance with reality, in order not to accelerate cost-of-living squeeze and jolt the rate market,” Kimura added.The Nikkei 225’s surge came as the yen weakened more than one percent to top 150 per dollar, while it hit a record low against the euro, touching 176.25 to the single currency.”An immediate market reaction is likely to be a return of a so-called ‘Takaichi trade’, which means higher equity prices (except banks), yen depreciation, and higher super-long bond yields,” said Masamichi Adachi, UBS Securities chief economist for Japan.Yields on 30-year Japanese bonds also rose sharply, reflecting fears the country’s already colossal debt will balloon further.Takaichi’s win also raised questions about the chances of more Bank of Japan rate hikes, adding to downward pressure on the yen.There were also gains in Singapore and Mumbai, but Hong Kong, Sydney, Wellington, Manila and Bangkok were all in the red.Sentiment remains up, though, as bitcoin hit a new peak of $125,689 on Sunday.Gold pushed past $3,945 and closer to $4,000 Monday, with the US shutdown and expected rate cuts boosting its attractiveness.The plunge in Paris’s CAC 40 index came after France’s President Emmanuel Macron accepted Prime Minister Sebastien Lecornu’s resignation, plunging the country further into political deadlock.Macron appointed Lecornu last month but the largely unchanged cabinet lineup he unveiled late Sunday was met with fierce criticism across the political spectrum.London’s FTSE dipped in the morning, after ending last week at a record, while Frankfurt also sank.US futures were all up.The closure of parts of the US government dragged into a second week after senators voted for a fourth time to reject a funding fix proposed by Republicans.Federal agencies have been out of money since Wednesday — with several public services crippled — as a result of deadlocked talks.The row meant key jobs data used by the Fed to guide it on monetary policy was not released when due on Friday.Still, observers say recent reports indicating the labour market is slowing would likely be enough to cut rates at the next meeting at the end of the month, with other readings on inflation due beforehand. “It’s still likely that the shutdown will end in relatively short order, allowing for the release of the September jobs report before the October (policy) meeting,” said economists at Bank of America.”But even if the first print of September payrolls is solid, doves on the committee will likely point to the recent trend of downward revisions to make the case to keep cutting. “And given (Fed chief Jerome) Powell’s recent dovish pivot, that argument is likely to carry the day.”Oil jumped more than one percent after OPEC+ agreed at the weekend to boost supplies by 137,000 barrels a day — less than initially expected.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 4.8 percent at 47,944.76 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,957.77 (close)London – FTSE 100: DOWN 0.1 percent at 9,477.95Shanghai – Composite: Closed for a holidayDollar/yen: UP at 150.01 yen from 147.45 yenPound/dollar: DOWN at $1.3445 from $1.3482Euro/pound: DOWN at 86.75 pence from 87.09 penceEuro/dollar: DOWN at $1.1664 from $1.1742 on FridayWest Texas Intermediate: UP 1.3 percent at $61.66 per barrelBrent North Sea Crude: UP 1.3 percent at $65.34 per barrelNew York – Dow: UP 0.5 percent at 46,758.28 points (close)

Tokyo stocks surged more than four percent to a record high Monday and the yen sank on bets that the new leader of Japan’s ruling party will embark on a new era of loose monetary policy to kickstart the country’s economy.News of the victory for Sanae Takaichi — who is expected to become prime minister this month — fanned a fresh wave of optimism on Japanese trading floors as she has previously backed aggressive monetary easing and expanded government spending.But the rally in Tokyo was not matched in the rest of Asia, where markets were mixed following last week’s healthy advances and as investors keep tabs on lawmakers’ attempts to end a US government shutdown.However, expectations that the Federal Reserve will cut interest rates again this month continue to provide support to risk assets, with the S&P 500 and Dow both hitting peaks along with bitcoin and gold.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries such as farming and fisheries.Takaichi “looks more inclined than the others to juice the economy”, said Taro Kimura at Bloomberg Economics.”Still, with inflation rising and long-term (bond) yields climbing, she will have to balance her stance with reality, in order not to accelerate cost-of-living squeeze and jolt the rate market,” Kimura added.The Nikkei 225’s surge came as the yen tumbled more than one percent to almost 150 per dollar, while it hit its lowest ever against the euro, sitting at 175.69 to the single currency.”An immediate market reaction is likely to be a return of a so-called ‘Takaichi trade’, which means higher equity prices (except banks), yen depreciation, and higher super-long bond yields,” said Masamichi Adachi, UBS Securities chief economist for Japan.Yields on 30-year Japanese bonds also rose sharply, reflecting fears that the country’s already colossal debts will balloon further under Takaichi.There were also gains in Singapore and Manila, but Hong Kong, Sydney and Seoul were all in the red. Shanghai is closed for a holiday.Sentiment remains up, though, after bitcoin hit a new peak of $125,689 on Sunday.Gold pushed past $3,924 and closer to $4,000 an ounce on Monday, with the US shutdown and expected rate cuts boosting its attractiveness.London’s FTSE also ended last week at a record. US futures were all up.The closure of parts of the government dragged into this week after senators voted for a fourth time to reject a funding fix proposed by President Donald Trump’s Republicans.Federal agencies have been out of money since Wednesday — with a wide range of public services crippled — as a result of deadlocked talks in Congress on how to keep the lights on.The row meant key jobs data that is used by the Fed to guide it on monetary policy was not released when it was due on Friday.Still, observers say recent reports indicating the labour market is slowing would likely be enough to allow officials to cut rates at the next meeting at the end of the month, with other readings on inflation due beforehand. “It’s still likely that the shutdown will end in relatively short order, allowing for the release of the September jobs report before the October (policy) meeting,” said economists at Bank of America.”But even if the first print of September payrolls is solid, doves on the committee will likely point to the recent trend of downward revisions to make the case to keep cutting. “And given (Fed chief Jerome) Powell’s recent dovish pivot, that argument is likely to carry the day.”Oil jumped more than one percent, extending Friday’s gains, after OPEC+ agreed at the weekend to boost supplies by 137,000 barrels a day — less than initially expected.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 4.5 percent at 47,835.36 (break)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 26,995.12Shanghai – Composite: Closed for a holidayDollar/yen: UP at 149.84 yen from 147.45 yenPound/dollar: DOWN at $1.3455 from $1.3482Euro/pound: UP at 87.17 pence from 87.09 penceEuro/dollar: DOWN at $1.1728 from $1.1742 on FridayWest Texas Intermediate: UP 1.5 percent at $61.78 per barrelBrent North Sea Crude: UP 1.4 percent at $64.45 per barrelNew York – Dow: UP 0.5 percent at 46,758.28 points (close)London – FTSE 100: UP 0.7 percent at 9,491.25 (close)