Oil slides on Mideast respite, yen down as Japan govt loses majority
LDP loses majority in Japan; yen hits 153/dollar
Oil slides 4% on restrained Israel strike
'Magnificent 7' earnings, US jobs data in focus
Updates prices, adds analysts' comments in paragraphs 6, 8-9
By Tom Westbrook
SINGAPORE, Oct 28 (Reuters) -The yen hit a three-month low on Monday as Japan's ruling party lost its parliamentary majority, while oil tumbled after Israel's weekend strike on Iran bypassed oil or nuclear targets.
Japan's Nikkei .N225, after initially falling, rose 1.9% and the yen JPY=EBS slipped as far as 0.9% to 153.88 per dollar following the ruling Liberal Democratic Party's (LDP) weakest result since 2009 in Japan's weekend election.
Brent crude futures LCOc1 fell 5%, trading as cheaply as $71.99 a barrel after Israel's response to an Iranian missile attack focused, so far, on missile factories and other sites near Tehran and not on disrupting energy supplies. O/R
In Japan, the LDP which has ruled for most of the post-war years and junior coalition partner Komeito won 215 lower-house seats at Sunday's election, public broadcaster NHK reported.
This falls well short of the 233 needed for a majority and the yen was squeezed since investors figured any government that emerges is likely to make a dovish shift in economic policies. .TFRX/
"The administrative power of the ruling coalition has inevitably become more fragile, and we see likelihood of pressure building towards more fiscal expansion, given that some opposition parties advocate this," Goldman Sachs analysts wrote.
"The markets are likely to think this means more trouble for the yen with 155 the first target and (the finance ministry's) line in the sand at 160," said Bob Savage, head of markets strategy and insights at BNY in a note.
Nomura analyst Yusuke Miyairi also expects the Bank of Japan, which reviews policy on Thursday, will be more dovish and that will hurt the yen.
"We expect this political turmoil largely to negatively influence Japanese stock prices," he said.
Gains in the Japanese stock market, which often moves in the opposite direction to the yen as a weaker currency can help exporters, were led by technology companies.
RISING DOLLAR
Broader currency markets were steady, leaving the dollar on course for its largest monthly rise in 2-1/2 years as signs of strength in the U.S. economy and the prospect of a Donald Trump presidency have driven U.S. yields sharply higher.
While markets have started pricing in a second Trump administration in recent weeks, Vice President Kamala Harris is leading Trump nationally by a marginal 46% to 43%, a recent Reuters/Ipsos poll showed.
At 4.23%, benchmark 10-year Treasury yields US10YT=RR are up 43 basis points through October, against a rise of 16 bps for 10-year bunds DE10YT=RR and 23 bps for gilts GB10YT=RR.
Markets price a 95% chance of a 25 basis point Federal Reserve rate cut at its November meeting. Odds for a bigger half-point cut were at 50% a month ago, according to CME's FedWatch tool. FEDWATCH
Elsewhere, U.S. stock futures ESc1 were up 0.4% ahead of a big week of earnings and data. In early European trades, the pan-region Euro Stoxx 50 futures STXEc1 were up 0.26% and German DAX futures FDXc1 were up 0.21%.
Five of the "Magnificent Seven" group of megacap companies are set to report: Google parent Alphabet GOOGL.O, Microsoft MSFT.O, Facebook owner Meta META.O, Apple AAPL.O and Amazon AMZN.O.
The U.S. jobs report on Nov. 1 comes as investors are weighing whether a stronger-than-expected economy could lead to fewer interest rate cuts, while inflation readings are due in Europe and Australia.
Gold XAU=, which hit record highs last week, hovered just shy of those levels at $2,736 an ounce.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Nikkei 225 index falls as political uncertainty arises https://reut.rs/3UiFsEU
Reporting by Tom Westbrook; Editing by Christopher Cushing and Sonali Paul
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
