Global Markets Face Uncertainty Amid Political Tensions

The Asian session started quietly, with investors wary over China's limited stimulus package, amid deflationary pressures. Upcoming retail sales data may indicate if policies are working. Political uncertainty in Japan and Europe adds to market volatility, complicating decisions for central banks on interest rate adjustments.

The global markets are treading cautiously as investors react to China's recent policy measures. The package, focusing on debt swapping, lacks direct stimulus, leaving market players frustrated as inflation reveals deflationary trends.

In Japan, political turmoil looms with Prime Minister Ishiba's position uncertain following a parliamentary vote, and a scandal involving an opposition party leader. The unpredictability is making the Bank of Japan's interest rate decisions more complex.

Meanwhile, European political landscapes add to market anxieties. Chancellor Scholz suggests advancing a confidence vote, hinting at potential snap elections. Key market influences include U.S. inflation data and ECB speeches.

(With inputs from agencies.)