Markets Today: Softbank Surges 11%, HSBC Falls 6.6%, US Dollar Continues to Advance. DAX Eyes Further Gains

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Asia Market Wrap - Softbank Surges 11%, Nikkel Rallies 1.8%

Most Read: USD/JPY: Current JPY weakness is driven by short-term sentiment as it disconnects from US-Japan yields

The Japanese stock market, particularly the tech-focused Nikkei index, soared to record highs on Thursday, largely fueled by excitement over robotics and Artificial Intelligence (AI).

The main driver of the rally was SoftBank Group, an index heavyweight, whose stock jumped over 11%. This surge came after the investment giant announced it had purchased the robotics business of Switzerland's ABB, reinforcing its strategy to combine robotics and AI. Although the initial announcement was overlooked, investors bought into the AI-powered robot vision on Thursday.

Another robot maker, Yaskawa Electric, also saw a significant boost, rising 9.5%. These two stocks significantly contributed to the overall market increase, with SoftBank alone accounting for over half of the Nikkei's gain.

Consequently, the Nikkei 225 index climbed 1.8% to close at an all-time high of 48,580.44. The broader Topix index, however, had a smaller gain of 0.7%.

In contrast, the auto sector was among the worst performers, dropping 1.3%, despite the fact that a weak yen usually helps exporters like carmakers by increasing the value of their overseas profits. Toyota specifically fell by over 2%.

The overall positive momentum for Japanese stocks began earlier in the week following the election of Sanae Takaichi, a proponent of economic stimulus, as the leader of the ruling party, positioning her to become the next Prime Minister.

European Session - European Shares Open Lower

European shares opened lower Thursday, pulled down by banks after HSBC fell hard. The bank’s plan to privatise Hong Kong’s Hang Seng Bank may mean a big shift – the deal is valuated around HK$106 billion (about $13.6 billion).

The pan‑European STOXX 600 hovered near its recent high, only 0.1 % down at 573.4 points.

Shares of HSBC dropped roughly 6.6 %, while the wider banking index lost about 1.2 %. Lloyds Banking Group fell 3.4 % as it appears likely to need extra cash to cover costs for motor‑finance customers.

Germany’s Gerresheimer slumped 10.7 % after it cut its annual outlook – a sharp move for the packaging‑and‑medical‑gear maker.

In contrast, the basic‑resources sector rose 1.4 %, tracking higher copper and iron‑ore prices. The technology index ticked up 0.4 %, led by France’s Alten, which announced it will separate the chairman and CEO roles as part of a governance overhaul.

Burberry gained 2.4 % after Deutsche Bank upgraded the luxury label from “hold” to “buy”.

Overall the market stayed close to its record, with mining and tech gains helping to limit the losses made by the banking‑heavy drop.

On the FX front, the US dollar is continuing its rally this week, reaching a two-month high, mainly because two other major currencies, the euro and the Japanese yen are struggling.

The euro has been weak following a political crisis in France, where the Prime Minister and his government resigned earlier this week. Although President Emmanuel Macron plans to quickly name a new Prime Minister, the political uncertainty has weighed on the currency.

The euro dropped to 1.1609, its lowest level since late August, and is down nearly 1% for the week.

The Japanese yen is also under pressure. Its weakness comes after a conservative, Sanae Takaichi, was chosen to lead Japan's ruling party, which is expected to support policies that keep interest rates low. The yen fell to 153.07 per dollar levels not seen since February and has dropped over 3.8% this week.

These significant declines in the euro and the yen have made the US dollar more appealing to investors, causing the US Dollar Index to climb 0.20% to 99.038.

Currency Power Balance

Source: OANDA Labs

Oil prices remained mostly flat on Thursday as investors tried to balance two major global events.

On one hand, there was news of a ceasefire deal in Gaza, which suggested that tensions in the Middle East might calm down, potentially leading to lower oil prices.

On the other hand, peace talks in Ukraine have stopped. This suggests that sanctions on Russia will likely continue, which could limit Russia's oil exports and help keep prices high.

As these two factors pulled in opposite directions, the price of Brent crude rose slightly to $66.38 a barrel, and US West Texas Intermediate (WTI) crude also saw a small increase to $62.66 a barrel.

For more on the OPEC + output hike and Oil prices, read OPEC + Delivers Modest Output Hike, Brent Crude Rises 1.7%. What Next for Oil Prices?

Gold prices slightly dropped on Thursday after hitting a major milestone the previous day.

It would appear market participants sold off some of their gold to take profits after the price soared past $4,000/oz for the first time ever on Wednesday.

This record high was reached because of general economic worries, geopolitical tensions, and the expectation that the U.S. might cut interest rates again later this year.

Spot gold was last trading at $4,029.86 per ounce, down a small amount after reaching its record peak of $4,059.05.

Most Read: Gold (XAU/USD) Prices Up 1.5% on the Day. Is Gold's $4,000 Breakout Sustainable?

Economic Calendar and Final Thoughts

Looking at the economic calendar, it is a rather quiet day from a data perspective for both the US and European sessions.

There is once again a host of speakers from the Federal Reserve and ECB throughout the day and that could shake some volatility.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - DAX Index

From a technical standpoint, the DAX index has pulled back to the top of the channel it broke out of last week.

This sets the index up for a potential 900 point rally to the upside.

Given that global equities have started the week on the front foot, European equities are lagging which could bode well for the DAX if price can hold above the 24200 level in the early part of the week.

The index has now broken above the 24665 July swing high with Immediate upside resistance now resting at 24750 before the 25000 psychological level comes into focus.

A move to the downside will face support at 25500 and 24200 before the confluence area around 24000 comes into focus.

DAX Index Daily Chart, October 9. 2025

Source: TradingView.com (click to enlarge)

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