1. Japanese stocks jump as Prime Minister Ishiba set to step down
Asia-Pacific markets traded mostly higher Monday as investors assessed Japan’s Prime Minister Shigeru Ishiba’s resignation announcement over the weekend, as well as China exports data. Japan’s benchmark Nikkei 225 rose 1.45% to close at 43,643.81 following the prime minister’s statement, which came after weeks of mounting pressure over his national election defeat late last year. The Topix climbed 1.06% to close at a record high of 3,138.2. The Japanese yen weakened 0.64% to 148.33 against the greenback, while Japanese bonds continued their sell-off. Hong Kong’s Hang Seng index rose 0.8%, while the mainland’s CSI 300 added 0.16% to close at 4,467.57 after China’s August exports climbed by a less-than-expected 4.4% in U.S. dollar terms from a year earlier.
2. Nasdaq closes at record high, S&P 500 ends higher ahead of inflation data this week
The Nasdaq Composite closed at a record high on Monday as investors gear up for a data-heavy week that includes two closely watched readings on inflation. The tech-heavy Nasdaq finished up 0.45% at 21,798.70, a record high after hitting a new all-time intraday high in the session. The S&P 500, meanwhile, settled up 0.2% at 6,495.15, while the Dow Jones Industrial Average rose 114 points, or 0.25%, to close at 45,514.95. The move higher was led by a rise in shares of chipmaker Broadcom, which gained 2%, and artificial intelligence darling Nvidia, whose more than 1% advance reversed some of its steep losses from the past month. Meta Platforms, Amazon and Microsoft were also higher. Investors are awaiting two critical inflation reports this week for more insight into the health of the economy, after weaker-than-expected hiring data on Friday.
3. Gold rallies to record high above $3,600/oz as Fed rate cut bets firm
Gold surged past the $3,600 an ounce level for the first time on Monday, hitting a fresh record high, as soft U.S. labour data reinforced expectations the U.S. Federal Reserve will cut interest rates next week. Spot gold rose 1.2% to $3,632.51 per ounce. Bullion hit a record high of $3,646.29. U.S. gold futures for December delivery was up 0.7% to $3,680.30. Friday’s jobs report showed U.S. employment growth slowed sharply in August. Traders now see a 88% chance of a quarter-point rate cut at the Fed’s September meeting, with around 12% chance of a larger 50-bps cut, according to the CME FedWatch tool. Gold prices are up 38% so far this year, after gaining 27% in 2024, bolstered by dollar softness, strong central bank accumulation, dovish monetary settings and heightened global uncertainty.
4. Oil gains after OPEC+ output hike seen modest
Oil prices climbed on Monday, regaining some of last week’s losses, after OPEC+’s output hike was seen as modest and due to concerns over the possibility of more sanctions on Russian crude. Brent crude climbed 52 cents, or 0.79%, to close at $66.02 a barrel, while U.S. West Texas Intermediate crude rose 39 cents, or 0.63%, to settle at $62.26 a barrel. Both benchmarks fell more than 2% on Friday as a weak U.S. jobs report dimmed the outlook for energy demand. They lost more than 3% last week.
5. Traders see a chance the Fed cuts by a half point
Traders are leaving open the option the Federal Reserve next week could cut its key interest rate by half a percentage point, though most on Wall Street think the bar for doing so is pretty high. In the most likely scenario being priced in by markets, the Fed on Sept. 17 will lower the overnight funds rate by 25 basis points, or 0.25 percentage point. Odds for a quarter-point cut were around 88% on Monday afternoon, according to the CME Group’s FedWatch tool that measures odds of Fed action based on 30-day fed funds futures contracts. However, that left open a remote chance that the central bank’s Federal Open Market Committee still could enact a half-point reduction, as it did at the September meeting in 2024. Chances of that were at 12% as traders disregarded any possibility the committee might stay put.
6. French prime minister Francois Bayrou ousted in confidence vote
French Prime Minister Francois Bayrou and his centrist minority government were ousted in a confidence vote in France’s National Assembly on Monday. Bayrou was widely expected to lose the motion — that he had called himself — after failing to win support from political rivals on both the right and left for 2026 budget plans aimed at reducing the country’s yawning budget deficit. Losing the confidence vote means President Emmanuel Macron will now have to appoint a replacement who will be France’s fifth prime minister in less than two years. Macron is seen as likely to choose another centrist ally to lead a minority government.
7. Trump asks Supreme Court for emergency order to keep billions of dollars in foreign aid frozen
The Trump administration on Monday asked the Supreme Court for an emergency order to keep billions of dollars in foreign aid frozen. The crux of the legal fight is over nearly $5 billion in congressionally approved aid that President Donald Trump last month said he would not spend, invoking disputed authority that was last used by a president roughly 50 years ago. Last week, U.S. District Judge Amir Ali ruled that the Republican administration’s decision to withhold the funding was likely illegal. Trump told House Speaker Mike Johnson, R-La., in a letter on Aug. 28 that he would not spend $4.9 billion in congressionally approved foreign aid, effectively cutting the budget without going through the legislative branch. He used what’s known as a pocket rescission. That is when a president submits a request to Congress toward the end of a current budget year to not spend the approved money.
8. Trump ready for ‘phase two’ of Russia sanctions over Ukraine conflict
U.S. President Donald Trump said on Sunday he is ready to move to a second phase of sanctioning Russia, the closest he has come to suggesting he is on the verge of ramping up sanctions against Moscow or its oil buyers over the war in Ukraine. Trump has repeatedly threatened Moscow with further sanctions but withheld them as he pursued peace talks. The latest comments suggest an increasingly aggressive posture, but Trump stopped short of saying he was committed to such a decision or what a second phase might entail. Asked by a reporter at the White House if he is ready to move to “the second phase” of sanctions against Russia, Trump responded, “Yeah, I am.” He did not elaborate. Trump has been frustrated by his inability to bring a halt to the fighting after he initially predicted he would be able to end the war in Ukraine swiftly when he took office in January. India is a major buyer of Russia’s energy exports, while Western buyers have cut back in response to the war.
9. Chinese EV maker Xpeng eyes global launch of mass-market Mona brand in 2026
Xpeng plans to launch its mass-market Mona brand in overseas markets next year in a move that will boost competition with its Chinese rivals and established automakers in the electric vehicle arena. In a wide-ranging interview with reporters on Tuesday, Xpeng CEO He Xiaopeng said the company’s international expansion is moving faster than he expected and signaled, for the first time, that the company is open to acquiring other electric carmakers. Xpeng launched the Mona brand in China last year with the debut of the Mona M03 electric coupe. The car was launched with an aggressive starting price of 119,000 Chinese yuan, which is just under $17,000. Xpeng will launch Mona-branded cars in Europe next year, He told the press. This is the first time the launch has been reported.
10. Uber, Momenta to begin self-driving testing in Munich next year
Uber and China-based self-driving tech firm Momenta announced plans on Monday to test level 4 autonomous vehicles in Germany next year, as the ride-hailing platform seeks to expand its robotaxi footprint amid rising competition. Autonomous vehicles classified as level 4 can drive without human intervention in specific zones and under certain conditions. Uber has been attempting to establish a strong foothold in the robotaxi industry through partnerships with companies including Alphabet’s Waymo, Lucid and WeRide as Tesla also expands its nascent autonomous taxi services. Self-driving technology has faced a long road to commercialization as safety regulators heavily scrutinize autonomous cars over accidents and crashes.
11. Baidu shares rise nearly 7% on notes offering plan
Baidu’s Hong Kong-listed shares rose on Monday, extending strong gains from last week after the Chinese internet giant said it planned to raise more capital through a notes’ issuance. Baidu Inc rose as much as 4% to a near six-month high of HK$101.60, helping drive a 0.2% rise in the Hang Seng index. Broader HK tech stocks also rose on Monday, with Alibaba Group up 4%, while Tencent Holdings Ltd added 1%. Baidu said earlier on Monday that it planned to offer yuan-denominated senior unsecured notes in offshore transactions outside the United States. Baidu did not specify the size or the terms of the offering. The company had earlier this year outlined plans to raise over $3 billion through bond issuances, reports had shown, as it moves to shore up cash levels and invest more in artificial intelligence.
12. Nvidia’s Huang joining Trump on UK state visit next week
Nvidia CEO Jensen Huang will join President Donald Trump next week on a state visit to the U.K., a person familiar with the plans told CNBC’s Kristina Partsinevelos on Monday. The person asked to remain anonymous in order to discuss the trip. The Nvidia chief is one of several U.S. business leaders who are expected to accompany Trump, including OpenAI’s Sam Altman, Blackstone CEO Stephen Schwartzman, and BlackRock CEO Larry Fink, according to sources, which first reported the trip. Apple CEO Tim Cook was invited, according to the report. The luminaries are expected to join Trump at a state banquet hosted by King Charles scheduled for next week.