Market Moves Amid Political Drama: Stocks Rise, Dollar Fluctuates

Stocks experienced a boost while Treasury yields remained lower on Monday, propelled by expectations of an imminent interest rate cut following disappointing U.S. labor statistics. Investors are bracing for a politically charged week filled with critical economic data and decisive central bank activities.

In Japan, the resignation of Prime Minister Shigeru Ishiba stirred market movements, with the yen and long-term bonds declining, and stocks rising. The focus now shifts to identifying Ishiba's successor, with possible contenders like Sanae Takaichi, who supports more relaxed fiscal and monetary policies.

Meanwhile, France faces possible political upheaval as Prime Minister Francois Bayrou anticipates losing a confidence vote. The uncertainty regarding President Macron's next steps has affected French and broader European assets. Concurrently, the dollar hovers amidst fluctuations following weak U.S. job data, further influenced by political dynamics in Japan and France.

(With inputs from agencies.)