The euro fell to a 17-month low on Monday as investors reacted to a mix of French fiscal strain and a sudden turn in Spanish politics, while Asian equities found support from easing expectations of another near-term Federal Reserve rate hike.
Risk appetite in Europe came under pressure at the open. S&P 500 futures were broadly flat, and Nasdaq 100 futures traded slightly below the record level set last week. In Asia, Japan’s Nikkei rose 2.4% and the Topix gained 1.3%. Hong Kong’s three main indexes opened lower and then recovered ground, with AI computing hardware, PCB makers, and optical communications stocks standing out, while traditional sectors such as property remained weak.
Brazilian assets also jumped after the first round of the country’s presidential election. A right-wing senator unexpectedly moved ahead of incumbent President Luiz Inácio Lula da Silva, sending Brazil stock index futures up 8.3% and the real up 4.6%.
U.S. premarket moves and cross-asset pricing
Before the U.S. open, S&P 500 futures were down 0.01% at 7,776.5, Nasdaq 100 futures fell 0.12% to 31,023.75, and Dow futures rose 0.04% to 51,498.
Among individual names, industrial software company PTC jumped more than 34% in premarket trading after Schneider Electric confirmed a $22.6 billion acquisition of the company. Taiwan Semiconductor Manufacturing Co. (TSMC) rose nearly 2% before the bell as it explored cooperation with Elon Musk-backed Terafab on a wafer fab project. U.S.-listed Chinese EV maker NIO gained more than 1% after its battery-swap service hit a record daily volume during the National Day self-driving travel peak in China.
In precious metals, spot gold rose 0.36% to $4,157.62 an ounce and spot silver gained 2.08% to $61.71 an ounce.
In foreign exchange, the U.S. dollar index rose 0.29% to 102.23. The euro fell 0.41% to $1.1206, the dollar added 0.21% against the yen to 158.19, sterling slipped 0.10% to $1.3226, and the Australian dollar edged up 0.05% to $0.6960.
In oil, Brent crude futures rose 0.25% to $102.51 a barrel, while U.S. crude futures fell 1.2% to $90.02 a barrel.
Europe becomes the main pressure point
Europe was the key variable at the start of the week.
According to Wallstreetcn, France’s policy deadlock continued to deepen and high-risk bonds were sold off. In Spain, Prime Minister Pedro Sánchez called an early election after large-scale protests tied to housing issues, adding to market concern that fiscal stress could spread further across the euro area.
The euro fell 0.5% to $1.1204, its lowest level since May 2025. The dollar index was up 0.1%.
Kathleen Brooks, an analyst at XTB, said: “Europe is losing favor with investors, and bond market vigilantes are watching the eurozone closely. The question now is whether Spain will be next.”
European equities were mixed. The Stoxx 600 gave back early gains and was up 0.14%, while France’s CAC 40 was the weakest major index in the region, falling more than 1% intraday. S&P 500 futures were down nearly 0.2%, and Nasdaq 100 futures eased after touching a record high on Friday.
Asia gains as rate-hike pressure eases
Asian markets were supported by a different driver. U.S. nonfarm payroll growth for September came in below expectations and wage growth slowed, prompting money markets to push the probability of a Fed rate hike in October below 25%. The MSCI Asia Pacific Index rose 1.2%, following Friday’s gains on Wall Street.
Japan led the advance. The Nikkei 225 rose more than 2.5% at its intraday high and briefly moved back above 70,000, with technology shares leading the move.
Taiwan’s benchmark index climbed as much as 2.7% to 49,770.66, while TSMC rose 3% intraday to a fresh record. Markets in South Korea and mainland China were closed for holidays and did not take part in the rally.
Shane Oliver, chief economist and head of investment strategy at AMP Ltd., wrote in a note that the September jobs data were “not too hot, not too cold” and fit a “Goldilocks” scenario, reinforcing expectations that the Fed would not rush into another rate increase this month.
Hong Kong’s PCB, optical communications, and AI hardware names lead
In Hong Kong, the Hang Seng Index closed up 0.28% at 24,040.34 and the Hang Seng Tech Index rose 0.62% to 4,183.68. Kingboard Laminates gained nearly 12% in a single session, Kinwong Electronic’s H shares rose more than 9%, and Zhipu climbed 6.2% to lead Hang Seng Tech constituents. In optical communications, Comba Telecom surged more than 25%.
PCB stocks were the clearest leadership group of the day. Kingboard Laminates rose 11.94% to HK$55.3 on turnover of HK$3.209 billion. Kingboard Holdings added 8.36%. Kinwong Electronic’s H shares rose more than 9%, Guanghe Technology’s H shares gained more than 6%, and Victory Giant Technology’s H shares rose more than 5%.
Price increases continued to run through the supply chain. Kingboard Laminates has issued seven price-hike notices so far this year. Nan Ya Plastics raised prices again on 20% of its products starting in September. China Jushi increased prices for thick and thin electronic fiberglass cloth by 15% and 20% in September, respectively. Jiangxi Hongruixing Technology said ex-factory prices for copper-clad laminate would rise 10%.
Zhipu, a large-model company, rose 6.2% to close at HK$665, leading Hang Seng Tech components. Goldman Sachs upgraded the stock to “buy” from “neutral” and set a target price of HK$1,560, saying its monetization path had become clearer and its valuation looked attractive.
Optical communications and semiconductor names also moved higher. Comba Telecom rose more than 25%, Cambridge Technology gained more than 10%, Montage Technology rose more than 6%, Zhongji Innolight added more than 3%, and Semiconductor Manufacturing International Corp. (SMIC) rose more than 1%. Lenovo gained 4.7% after CLSA reiterated it as its top China technology pick, citing fast AI business growth and strong order momentum. Turnover in Lenovo reached HK$1.707 billion.
Saudi pipeline rumor triggers a brief oil spike
The security status of Saudi Arabia’s key cross-country oil pipeline triggered a sharp but short-lived swing in crude prices, showing how sensitive the market remains to Middle East geopolitical risk.
Bloomberg cited sources as saying the Saudi East-West pipeline was operating normally and that earlier reports claiming operations had been halted after another attack were not confirmed.
After that update, Brent’s gain narrowed to 0.36% at $102.62 a barrel. Earlier, the contract had jumped to $103.08 a barrel on the shutdown rumor, with the intraday gain briefly widening to more than 1.2%.
Saudi Aramco’s CEO said publicly the company was continuing exports through Yanbu, Sidi Kerir, and Port Said, and added that the system held sufficient inventories to supply customers. He also warned that without the east-west pipeline, Brent crude could reach $200 a barrel.
Gold rebounds slightly, base metals mixed
Gold rose 0.46% to $4,158 an ounce after posting its biggest weekly decline since June.
London Metal Exchange copper futures rose as much as 0.9% before trimming the gain to 0.6%. Copper had recorded its biggest weekly drop since March on Friday. LME tin rose 0.2%, while aluminum was unchanged.
The report said U.S. tariff threats had led traders to ship hundreds of thousands of tons of metal into the United States, a move that could tighten supply elsewhere. At the same time, demand from data centers and renewable energy supported prices. Analysis cited in the report also said China’s Golden Week holiday was limiting liquidity in metals trading.