Author: Bao Yilong, Wallstreetcn
The twin shocks of France’s fiscal impasse and a sudden political upheaval in Spain have weighed on risk appetite, sending the euro against the dollar to a 17-month low. S&P 500 futures were little changed, while the Nasdaq 100 traded just below the record high it set last week.
Japan’s Nikkei surged 2.4% on Monday, while the Topix rose 1.3%. Hong Kong’s three major stock indexes gradually recouped their losses after opening lower. AI computing hardware emerged as the clearest theme of the day, with PCB and optical communications stocks leading gains, while traditional sectors such as property remained under pressure.
Meanwhile, the first-round results of Brazil’s general election came in, with a right-wing senator unexpectedly leading incumbent President Lula. Brazilian assets surged, with stock index futures jumping 8.3% and the Brazilian real rising 4.6%.
The following are the specific premarket moves in U.S. assets:
S&P 500 futures fell 0.01% to 7,776.5, Nasdaq 100 futures slipped 0.12% to 31,023.75, and Dow futures rose 0.04% to 51,498.
Among notable stocks, industrial software company PTC surged over 34% in premarket trading after Schneider Electric confirmed its $22.6 billion acquisition of PTC. TSMC rose nearly 2% premarket and is exploring cooperation with Terafab, Elon Musk’s wafer fab. Chinese ADR NIO rose over 1% premarket, as the Golden Week road-trip peak drove its daily battery-swap service volume to a record high.
Among precious metals, spot gold rose 0.36% to $4,157.62 an ounce, while spot silver gained 2.08% to $61.71 an ounce.
In foreign exchange, the dollar index rose 0.29% to 102.23; the euro fell 0.41% against the dollar to 1.1206; the dollar rose 0.21% against the yen to 158.19; the pound fell 0.10% against the dollar to 1.3226; and the Australian dollar rose 0.05% against the U.S. dollar to 0.6960.
In oil markets, Brent crude futures rose 0.25% to $102.51 a barrel, while U.S. crude futures fell 1.2% to $90.02 a barrel.
Rising risks in Europe send the euro to a 17-month low
Developments in Europe are the key variable as markets open this week.
Wallstreetcn noted that France’s policy deadlock continues to deepen, prompting a selloff in high-risk bonds. Spanish Prime Minister Pedro Sánchez called an early election amid large-scale public protests over housing issues, stoking market concerns that fiscal pressures could spread further across the euro area.
The euro fell 0.5% against the dollar to 1.1204, its lowest level since May 2025. The dollar index edged up 0.1%.
XTB analyst Kathleen Brooks said:
Europe is losing favor with investors, while bond-market “vigilantes” are closely watching developments in the euro area. The question now is: could Spain be next?
European stocks were mixed. The Stoxx 600 pared earlier gains to 0.14%, while France’s CAC 40 was Europe’s weakest index, falling over 1% intraday.
S&P 500 futures fell nearly 0.2%, while Nasdaq 100 futures edged lower in premarket trading after touching a record high last Friday.
Rate-hike pressure eases; Asia-Pacific tech stocks broadly advance
Asia-Pacific equities drew support from another key theme: U.S. job growth in September came in below expectations and wage growth slowed, prompting money markets to put the odds of a Fed rate hike in October below 25%. The MSCI Asia Pacific Index rose 1.2%, tracking last Friday’s gains in U.S. stocks.
Japan led gains in the region. The Nikkei 225 rose as much as 2.5% intraday, briefly reclaiming the 70,000 level, with technology stocks particularly strong.
Taiwan’s weighted index rose as much as 2.7% to 49,770.66, with TSMC surging 3% intraday to a record high. South Korea and mainland China were closed for holidays and did not participate in the rally.
AMP Ltd. Chief Economist and Head of Investment Strategy Shane Oliver said in a research note that September’s jobs data were “neither too hot nor too cold” and “fit the Goldilocks scenario, further reinforcing market expectations that the Fed will not rush to raise rates again this month.”
PCB stocks lead gains as AI computing-power supply chain sees prices and volumes rise in tandem
In Hong Kong, the Hang Seng Index rose 0.28% to 24,040.34 on Monday, while the Hang Seng Tech Index gained 0.62% to 4,183.68. Kingboard Laminates climbed nearly 12% in a single day, H-share-listed WUS Printed Circuit rose over 9%, and Zhipu gained 6.2% to lead Hang Seng Tech constituents. Among Hong Kong-listed optical communications stocks, Comba Telecom surged over 25%.
The PCB sector was the standout leader of the day: Kingboard Laminates rose 11.94% to HK$55.3, with turnover reaching HK$3.209 billion; Kingboard Holdings gained 8.36%; H-share-listed WUS Printed Circuit rose over 9%, H-share-listed Guangzhou Fangbang Electronics gained over 6%, and H-share-listed Victory Giant Technology rose over 5%.
Price-hike signals continue to ripple throughout the supply chain. Upstream, Kingboard Laminates has issued seven rounds of price-increase notices so far this year, while Nan Ya Plastics raised prices for its products by 20% again starting in September. Glass-fiber leader China Jushi raised prices for thick and thin electronic fabrics by 15% and 20%, respectively, in September. Jiangxi Hongruixing Technology announced a 10% increase in the ex-factory price of copper-clad laminates.
Large-model developer Zhipu rose 6.2% on the day to close at HK$665, leading Hang Seng Tech constituents and emerging as a key highlight in the AI software space. Goldman Sachs upgraded Zhipu from “Neutral” to “Buy” and set a target price of HK$1,560, saying its monetization path is becoming clearer and its current valuation is attractive.
Optical communications and semiconductor stocks also advanced in tandem. Comba Telecom rose over 25%, Cambridge Industries gained over 10%, Montage Technology climbed over 6%, Innolight rose over 3%, and SMIC gained over 1%. Lenovo Group rose 4.7% after CLSA reiterated it as its top China tech pick, citing rapid growth in its AI business and a robust order pipeline. Turnover reached HK$1.707 billion.
Oil prices retreat after Saudi East-West Pipeline reported attacked again, then confirmed to be operating normally
The security status of Saudi Arabia’s key cross-border oil pipeline swung through a “false alarm” episode in just a few minutes, reflecting the heightened sensitivity of global oil prices to current geopolitical risks in the Middle East.
According to Bloomberg sources, Saudi Arabia’s East-West Pipeline is currently operating normally. Earlier reports that it had been shut down after another attack have not been confirmed.
After the announcement, Brent crude’s gains eased to 0.36%, at $102.62 a barrel. It had earlier surged to $103.08 a barrel on rumors of a shutdown, with intraday gains briefly exceeding 1.2%.
Saudi Aramco’s CEO said publicly on the same day that the company continues to export via Yanbu, Sidi Kerir and Port Said, and stressed that ample inventories are available within the system to supply customers. He also warned that Brent crude could reach $200 a barrel without the East-West Pipeline, underscoring its strategic importance to the stability of global supply.
Gold edged up 0.46% to $4,158 an ounce, after just ending its biggest weekly decline since June.
London Metal Exchange copper futures rose as much as 0.9%, before paring gains to 0.6%. Copper posted its biggest weekly decline since March last Friday. LME tin rose 0.2%, while aluminum was unchanged.
U.S. tariff threats have prompted traders to divert hundreds of thousands of tonnes of metal to the United States, potentially squeezing supply elsewhere. At the same time, demand from data centers and renewable energy has lifted prices. Analysts said China’s ongoing Golden Week holiday had somewhat dampened liquidity in the metals market.