Opposition revives alliance, Japan and Thai elections

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Good morning and welcome back. It was huge weekend for elections. In Japan, Prime Minister Sanae Takaichi is poised for a historic landslide, but it's an outcome that may fuel further market volatility. In Thailand, early results from yesterday's vote show the ruling, pro-royalist Bhumjaithai party is on track to secure 191 seats in the 500-member House of Representatives — nearly triple the last election in 2023. The outcome represents the best-case scenario for the royalist establishment, but marks a significant setback for the pro-democracy movement. Here's all you need to know about Prime Minister Anutin Charnvirakul and how he sealed a clear win. - Ainsley Thomson, Wellington bureau chief What's happening now In Australian politics, the country's two main opposition parties have revived their long-standing coalition after it fractured due to a disagreement over a new anti-hate speech law. The coalition between the smaller National Party and the larger Liberal Party was formally reformed yesterday. The alliance had governed Australia for almost two-thirds of the period since World War II, but held less than a third of seats in the lower house of parliament after an election thrashing last year. All of Australia's major iron ore ports have been shut as Tropical Cyclone Mitchell hits the west coast. Operations at the ports of Ashburton, Cape Preston West, Dampier, Port Hedland and Varanus Island were halted, while bulk carriers and other vessels were forced out to sea to avoid the storm. Cape Lambert has also been impacted, according to Rio Tinto Group. Reserve Bank Governor Michele Bullock told lawmakers on Friday that one of Australia's main inflation drivers is beyond her control, even if it's technically the RBA's job to tame prices. What happened overnight Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… The S&P 500 Index rose about 2% and the Dow Jones Industrial Average topped 50,000 as a gauge of US sentiment hit a six-month high, fueling risk appetites. The Aussie and Kiwi surged to be almost back above 70 and 60 US cents respectively. Oil and Treasury yields rose. Japan's yen weakened in early Monday trade after the landslide election win implied an increase in fiscal stimulus plans. ASX futures indicate a strong opening for local equities. After rebounding Friday to nearly erase a brutal mid-week slide, US stocks are facing more selling this week from trend-following algorithmic funds, according to Goldman's trading desk. The S&P 500 Index has already breached its short-term trigger that prompted Commodity Trading Advisers, or CTAs, to sell stocks. Goldman expects these systematic strategies — which follow the stock market direction rather than fundamental factors — to remain net sellers over the coming week, regardless of market direction. Keir Starmer's chief of staff, Morgan McSweeney, quit his post on Sunday, becoming a casualty of the furor over the decision to appoint Peter Mandelson as the UK's ambassador to Washington that now threatens the prime minister's own position. Morgan McSweeney Photographer: Leon Neal/Getty Images Europe Treasury Secretary Scott Bessent cited Chinese traders as a reason behind last week's wild swings in the gold market. "The gold move thing — things have gotten a little unruly in China," Bessent said on Fox News' Sunday Morning Futures. "They're having to tighten margin requirements. So gold looks to me kind of like a classical, speculative blowoff." From the way some talk about it, China sounds like a vision of a zero-carbon future: A clean utopia churning out millions of EVs and billions of solar panels, connected by bullet trains, high-voltage power lines and sparkling metro systems, powered by photovoltaic farms and wind turbines, writes David Fickling for Bloomberg Opinion. That portrait of a solarpunk electrostate isn't entirely wrong. But there's still a troubling amount of 19th century technology propping up this 21st century reverie.  What to watch All times Sydney • 11:30 a.m.: Australia Dec. Household Spending One more thing... Lindsey Vonn crashed early in the Olympic downhill while nursing a badly injured knee and was taken away by helicopter. The 41-year-old underwent surgery for a fracture in her left leg, the AP reported. Teammate Breezy Johnson took gold — the first US medal at the Milano Cortina Games. United States' Lindsey Vonn crashes during an alpine ski women's downhill race, at the 2026 Winter Olympics, in Cortina d'Ampezzo, Italy. Photographer: Jacquelyn Martin/AP Enjoying Australia Briefing? You might also like: Markets Daily for what's moving in stocks, bonds, FX and commodities Next China for dispatches from within the world's second-largest economy on where China stands now — and where it's going next Markets Daily India for key news and movers in this fast-growing market before the trading day starts Get weekly updates on these industries with our new Retail Monitor, Auto Monitor, Defense Monitor, Real Estate Monitor, Banking Monitor newsletters Explore all Bloomberg newsletters at Bloomberg.com. We're improving your newsletter experience and we'd love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow us You received this message because you are subscribed to Bloomberg's Australia Briefing newsletter. 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