Global equities are moving higher as markets reprice geopolitical and inflation risk simultaneously.

Japan’s Nikkei surged past 62,000 after reopening from holiday, with technology and semiconductor stocks leading gains on the back of strong earnings momentum and continued AI-linked demand.

The decline in oil prices added further support by easing some of the inflation pressure that had built through recent weeks. Markets are interpreting the pullback as relief for liquidity conditions and central bank expectations.

For energy-importing economies like Japan, lower crude prices help reduce pressure on costs and improve the broader macro outlook even if import prices remain elevated historically.

Positioning also shows rotation back toward growth sectors. Capital is moving into technology and higher-beta equities while energy and materials lag, improving market breadth after a prolonged period of defensive positioning.

The move suggests investors are becoming more comfortable increasing exposure to risk assets as volatility across commodities and macro markets stabilizes.

For crypto markets, the backdrop remains supportive. Historically, periods where oil prices retreat from elevated levels have coincided with stronger flows into digital assets as inflation expectations ease and liquidity conditions improve.

The current rally across equities and crypto reflects a broader shift back toward growth and risk-sensitive positioning.

By Ryan Lee, Chief Analyst at Bitget Research

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