Global stock markets rise as dollar weakens, with investors weighing Fed rate cut hopes against political turmoil in Argentina, Japan, and France

Global stock markets rise on Monday as the U.S. dollar weakened broadly, though it gained against the Japanese yen, with investors digesting political uncertainty across several key economies.

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In Argentina, President Javier Milei’s ruling party suffered a major election setback in Buenos Aires province, sending the peso to a record low after plunging 7.5 percent. Argentine stocks tumbled more than 10 percent.

Japan also faced turbulence after Prime Minister Shigeru Ishiba resigned, driving the yen lower as markets priced in the possibility of a more dovish successor.

Meanwhile, France’s political climate remained fragile, with Prime Minister François Bayrou at risk of defeat, fueling concerns over potential economic paralysis in the eurozone’s second-largest economy.

In Indonesia, the stock market gave up early gains to close lower, despite the rupiah strengthening following the removal of Finance Minister Sri Mulyani Indrawati in a cabinet reshuffle.

Markets were also buoyed by expectations of a near-term U.S. Federal Reserve interest rate cut, after weaker-than-expected August labour data pushed Treasury yields lower for the fourth straight session.

MSCI’s global equity index advanced 0.35 percent to 959.07. In Europe, the STOXX 600 gained 0.28 percent, while emerging market shares added 0.58 percent.

Across Asia, MSCI’s index of Asia-Pacific shares outside Japan rose 0.67 percent. Japan’s Nikkei surged 1.45 percent to 43,643.81.

In the U.S., markets were mixed: the Dow Jones slipped, while the S\&P 500 and Nasdaq climbed 0.31 percent and 0.82 percent, respectively, ahead of key economic releases later this week.

Oil prices staged a modest rebound, while gold broke above \$3,600 an ounce, supported by expectations of Fed easing.

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According to Reuters, investors are walking a fine line between optimism over potential U.S. rate cuts and heightened political risks in major economies, with currency swings amplifying returns in global equity markets.