Global Markets Rally Amid Currency Shifts and Economic Data

New York/Tokyo, January 22, 2026 – Wall Street indices climbed sharply, with the S&P 500 posting a 1.16% gain—its biggest in two months—boosted by optimistic signals. European futures followed suit, up 1.3% in Asian trading hours. A rebounding dollar pressured the euro below US$1.17 to US$1.1676, while gold tumbled US$100 to US$4,790 from a peak of US$4,887.In Asia, Australia’s and Japan’s equity benchmarks advanced about 1%, and South Korea’s Kospi breached 5,000 for the first time. US 10-year Treasury yields eased one basis point to 4.24% in Tokyo, after a four bps drop in New York. Japanese bonds stabilized post a volatile week driven by election spending pledges.

Global Markets Rally

The Bank of Japan kicked off a two-day policy meeting, expected to hold rates but signal future hikes. The yen held at 158.24 per dollar, while the Australian dollar hit 18-month highs against the yen at ¥107.04 and a 15-month peak versus the greenback at US$0.6786, fueled by robust jobs data.Markets anticipate two more US rate cuts this year, with US core PCE inflation figures due later Thursday. Earnings reports from Intel, General Electric, Freeport-McMoRan, and Procter & Gamble are also on tap.

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