Japan’s Nikkei explodes to record highs

The Nikkei 225 continued its impressive rally, rising 2.1% to 50,342.25 points and setting a new all-time high.

Throughout October, the Japanese index has gained nearly 12%, solidifying its position as one of the world’s top-performing markets.

The government, led by Takaichi, who took office last week, is preparing a new fiscal package expected to exceed last year’s ¥13.9 trillion (around US$92 billion).

This stimulus aims to ease inflation, boost growth industries, and reinforce national security, according to Reuters.

Investor confidence remains strong: foreign investors have poured more than ¥5 trillion into Japan so far this year, including Warren Buffett’s Berkshire Hathaway, which continues to expand its holdings in the Japanese market.

The US: still the world’s powerhouse in 2026

The United States will remain the largest economy in the world in 2026, with a projected GDP of US$31.8 trillion — larger than China, Germany, and India combined.

Although growth is expected to moderate to 1.7% by 2026, the American economy remains structurally robust, driven by high industrial productivity, a strong GDP per capita, and global technological leadership.

Massive investments in AI, digital infrastructure, and automation continue to stabilize competitiveness and strengthen the country’s position in global trade.

Historic partnership: PayPal and Mastercard join forces

In a strategic move, Mastercard (MA) and PayPal (PYPL) have announced a global partnership integrating Mastercard Agent Pay with the PayPal digital wallet.

This integration will allow AI agents to complete transactions on behalf of users, securely accessing Mastercard cardholder credentials.

The service will be available to hundreds of millions of consumers and merchants worldwide, marking a significant step forward in automated financial technology.

Both companies will collaborate to develop and test this next-generation payment solution, combining AI innovation with secure digital finance.

Argentina: Trump’s support and a boost for markets

Following the legislative elections, the government of Javier Milei achieved a decisive victory, securing 40.72% of the national vote and even winning Buenos Aires Province, historically an opposition stronghold.

The result strengthens Milei’s position and restores investor confidence in the Argentine market.

Former US President Donald Trump has publicly endorsed Milei, describing him as a strong and courageous leader aligned with conservative and libertarian principles.

This could pave the way for closer ties between Argentina and the United States, especially in trade and investment relations.

China and the US: one step closer

In a promising development for global markets, China and the United States have reached a series of agreements on tariffs, maritime fees, fentanyl control, and export regulations following two days of talks in Malaysia.

The breakthrough signals a notable easing of tensions after months of escalating trade threats and export restrictions.

Both superpowers now appear determined to prevent further escalation, bringing a wave of optimism to investors and relief to global markets.

FXLive Conclusion

The global landscape shows a fascinating mix of euphoria, realignment, and strategic cooperation:

• Japan leads the equity rally with expansive fiscal policy.
• The US maintains its economic dominance.
• AI is driving revolutionary fintech partnerships.
• Latin America gains political and financial relevance.
• And China–US relations may be entering a phase of constructive dialogue.

FXLive Tip

Diversifying across technology, Asian indices, and emerging markets may provide a strategic advantage in 2026 — a year poised for innovation, expansion, and global realignment.