Market Updates for Monday, October 28, 2024: Citi Forecast, Bank of Canada Governor Speaking, US Election Backlash, and More

The yen fell sharply and oil prices slid in Asia today due to two significant events. Firstly, Japan’s ruling party lost its majority in the lower house of the Diet, causing uncertainty and potential political instability. The perception that policy normalization may face pressure to proceed more slowly and the need for a third party to join the coalition could impact the pace of rate hikes in Japan. This political uncertainty led to a lower yen and higher Japanese stocks.

Secondly, Israeli strikes on Iran targeted only military sites, sparing oil facilities and allowing Iran’s oil operations to remain unaffected. This de-escalation of tensions between the two countries led to a decrease in oil prices as the threat to oil supply diminished.

In other market news, Boeing is reportedly planning a capital raising of over US$15 billion, and the People’s Bank of China launched a new monthly reverse repo facility. In US election news, the Trump campaign faced backlash after a speaker at a rally called Puerto Rico “literally a floating island of garbage,” leading to criticism from high-profile Puerto Ricans and other Latin individuals.

Overall, the yen’s decline and oil price drop were the main highlights of the day in Asia, with other market movements remaining relatively subdued. Stay tuned for more updates on these developing stories.