International News 07 October 2025
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Nikkei Tops 46,000 as Markets Cheer Takaichi Win
Japan’s Nikkei 225 index soared past 46,000 for the first time on Monday (Oct 6, 2025), jumping 2.8% to 47,061.07, while the broader Topix gained 2.1%. The rally was fueled by Sanae Takaichi’s election as the new leader of the Liberal Democratic Party (LDP) and presumptive next prime minister—her win seen as a mandate for aggressive fiscal and monetary stimulus. Yields on 2-year Japanese government bonds fell 5 basis points to 0.89%, underscoring market expectations that the Bank of Japan will delay tightening. Meanwhile, the yen slumped over 1% against the U.S. dollar and euro. Traders are already positioning for a “Takaichi trade,” selling Japanese government bonds and buying domestic equities, betting that her Abe-style expansionist policies will turbocharge Japan’s markets.
Soybeans Slip as U.S. Harvest Advances and China Stays on the Sidelines
Chicago Board of Trade soybeans fell again on Monday, down 0.2% to $10.16½/bu around 00:34 GMT, extending last session’s losses. Corn and wheat also edged lower (-0.2% to $4.18¼/bu and -0.3% to $5.13½/bu, respectively). Pressure stems from accelerating U.S. harvest progress and a lack of sizeable new Chinese buying, with exporters diverting cargoes toward other Asian and African markets to offset muted China demand. As of early October, China—typically the top buyer of U.S. soy—has not booked significant volumes from the new-crop window, weighing on prices. In response, U.S. Treasury Secretary Scott Bessent signaled forthcoming federal support for farmers affected by China’s pullback, with a formal announcement expected Tuesday. Markets remain focused on harvest pace, export sales data, and any signs that Beijing will re-enter the U.S. book.
Yen Slides to Five-Month Low as Takaichi’s Win Fuels Fiscal Easing Bets
The Japanese yen tumbled sharply on Monday (Oct 6 2025), marking its steepest daily drop in five months, after Sanae Takaichi won the Liberal Democratic Party (LDP) leadership race—paving the way for Japan’s first female prime minister and signaling a shift toward looser fiscal policy. The yen fell 1.5% to ¥149.73 per U.S. dollar, its biggest one-day decline since May 12, erasing last week’s gains. It also dropped 1.3% to ¥175.39 per euro, near record lows. Takaichi, known for her pro-stimulus stance and alignment with “Abenomics,” is expected to push for new spending measures to boost Japan’s fragile recovery, reducing pressure on the Bank of Japan (BOJ) to tighten policy. Analysts warned that political and fiscal uncertainty may keep the yen under strain in the short term. With many Asian markets closed for holidays, the U.S. dollar index edged up to 98.07, while traders priced in a 94.6% chance of a 25-basis-point Fed rate cut at the October meeting, according to CME FedWatch. Broader currency markets saw modest moves: the euro slipped 0.3% to US$1.1710, the Australian dollar eased 0.1% to US$0.6590, and the New Zealand dollar dipped 0.1% ahead of the Reserve Bank of New Zealand’s expected rate cut. The yen’s sharp depreciation highlights investor concern that Japan’s next government may prioritize fiscal stimulus over monetary normalization—keeping BOJ policy ultra-accommodative even as global peers pivot to easing.