Global Market Jitters Amid Political and Economic Shifts

A summary of market movements includes the Nikkei's significant drop amidst potential policy changes in Japan, and the impact of China's stimulus measures. The Federal Reserve's policy decisions and the upcoming U.S. presidential election further add layers of uncertainty, with various global data releases and speeches by key financial figures expected to influence markets.

Uncertainty looms in global markets, highlighted by the Nikkei's 4.6% slide as investors grapple with potential interest rate hikes under Japan's new Prime Minister Shigeru Ishiba. Despite his hawkish reputation, Ishiba indicated over the weekend that easing policies might continue to support the fragile economy.

Meanwhile, China's equity surge continued with a 5% jump, buoyed by new stimulus measures aimed at lowering mortgage rates and lifting purchasing restrictions in top-tier cities like Guangzhou, Shanghai, and Shenzhen. These moves offset declines in the country's key manufacturing and services PMIs.

In the U.S., the Federal Reserve's next steps remain uncertain with economic data and the impending presidential election in focus. A Trump victory could lead to higher inflation and a stronger dollar. Key speeches from Fed officials and ongoing fiscal data releases will play a critical role in shaping market expectations.

(With inputs from agencies.)