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Dollar falls broadly but gains on yen while Nikkei rallies

after

Japan PM resignation

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Stocks rise globally as traders eye U.S. September rate

cut

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Politics roils investors in Argentina, Indonesia, France

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Optimism for benign US inflation data this week

By Sinéad Carew and Alun John

NEW YORK/LONDON, Sept 8 (Reuters) - A global index of

stocks was higher on Monday while the dollar fell broadly - but

gained against the yen - as investors grappled with political

uncertainty in countries from Japan and Indonesia to France and

Argentina.

A heavy election defeat for Argentine President Javier

Milei's ruling party in Buenos Aires province sent the

Argentinian peso to a record low, down as much as

7.5%.

Argentine stocks plunged more than 10% - headed for

the sharpest daily drop since March 2020 - raising uncertainty

ahead of a key October vote.

Japanese Prime Minister Shigeru Ishiba resigned on Sunday,

ushering in a potentially lengthy period of uncertainty at a

shaky moment for the world's fourth-largest economy, prompting

the yen to fall against the dollar.

France's fourth prime minister in less than two years, François

Bayrou, looked set for defeat in a confidence vote on Monday,

tipping the euro zone's second-biggest economy further into

political and economic paralysis.

And in Indonesia, stocks gave up early gains to finish lower,

while the rupiah rose, after Finance Minister Sri Mulyani

Indrawati was ousted in a cabinet shake-up.

Friday had seen weaker than expected U.S. labor data for

August, which appeared to seal the case for a Federal Reserve

interest rate cut this month.

The prospect of a cut and optimism that U.S. inflation data

due later in the week would be benign pushed down U.S. Treasury

yields for the fourth straight day, to their lowest level since

April.

"The weakening dollar against most currencies is boosting

returns in foreign stock indices. There are country-by country

concerns. But a lot of news in France is priced in and Japan's

prime minister could be replaced by a much more dovish,

market-friendly prime minister," said Gene Goldman, Chief

Investment Officer at Cetera Investment Management in the U.S.

US STOCKS SLIGHTLY HIGHER

MSCI's gauge of stocks around the globe

rose 3.36 points, or 0.35%, to 959.07, erasing Friday's losses,

while the pan-European STOXX 600 index rose 0.28%.

Emerging market stocks rose 7.33 points, or 0.58%, to

1,283.41.

MSCI's broadest index of Asia-Pacific shares outside

Japan closed 0.67% higher at 674.48, while

Japan's Nikkei rose 625.06 points, or 1.45%, to

43,643.81.

On Wall Street, on Monday at 10:40 a.m. the Dow Jones Industrial

Average was down 7.83 points, or 0.02%, at 45,393.03; the

S&P 500 was up 20.18 points, or 0.31%, at 6,501.58 and

the Nasdaq Composite was up 176.84 points, or 0.82%, at

21,877.23.

In currencies, the dollar index, which measures the

greenback against a basket of currencies including the yen and

the euro, fell 0.29% to 97.59, with the euro up 0.24% at

$1.1745.

Against the Japanese yen, the dollar strengthened 0.27%

to 147.78.

In U.S. Treasuries, the yield on benchmark U.S. 10-year notes

fell 2.5 basis points to 4.061%, from 4.086% late on

Friday while the 30-year bond yield fell 5.1 basis

points to 4.7233% from 4.774% late on Friday.

The 2-year note yield, which typically moves in step

with interest rate expectations for the Federal Reserve, fell

1.6 basis points to 3.491%, from 3.507% late on Friday.

Oil prices climbed to regain some of last week's losses,

after OPEC+'s output hike was seen as modest and due to concerns

over the possibility of more sanctions on Russian crude.

U.S. crude rose 0.45% to $62.16 a barrel and Brent

rose to $65.92 per barrel, up 0.64% on the day.

Gold surged past $3,600 an ounce for the first time on

Monday, as soft U.S. labor data reinforced expectations that the

Fed will cut interest rates next week.

Spot gold rose 1.37% to $3,635.39 an ounce. U.S. gold

futures rose 0.55% to $3,632.90 an ounce.