Markets Shrug Off Geopolitics as AI Rally Drives Record Highs Ahead of Central Bank Super Week

Asian equities surged as an AI-led rally pushed regional indices to fresh highs, with KOSPI up >2.5% and Nikkei rising over 1.5%. Markets are treating the US–Iran ceasefire as a de‑escalation, allowing risk appetite to return and capital to rotate into equities tied to the AI theme. Attention shifts to a packed central‑bank week: the BoJ meeting is “live” (base case 0.75% with a surprise hike to ~1.00% possible), the Fed is expected to hold at 3.50%–3.75% (tone and balance‑sheet guidance watched closely), and BoC/BoE/ECB decisions will hinge on messaging and projections. FX reflects the risk‑on mood (Aussie and euro firm, dollar pressured). Japan 10‑yr JGB yield rose to ~2.467%, while oil (Brent) stalls near the $110 pivot.