Currency and Bond Markets Jitter as Japan and France Face Political Upheaval

Political changes in Japan and France sent ripples through currency and bond markets on Tuesday as global investors reacted to developments. Japan's Nikkei index soared, fueled by hopes of fiscal and monetary expansion following the weekend election of Sanae Takaichi as ruling party leader.

In France, the surprise resignation of Prime Minister Sebastien Lecornu deepened political uncertainties and pressured markets. The euro and French bonds experienced minor setbacks amid speculation over President Emmanuel Macron's next steps and potential calls for new legislative elections.

Meanwhile, despite enthusiasm surrounding a significant AI chip supply agreement between AMD and OpenAI, global shares struggled. The deal promises to deliver substantial revenue for AMD, yet failed to counter the negative sentiment permeating financial markets.

(With inputs from agencies.)