The Pakistan Stock Exchange (PSX) opened the new fiscal year 2025-26 on a strong bullish note, with the benchmark KSE-100 Index surging over 1,700 points during early trading on Tuesday.

By 10:05 am, the index had climbed to 127,348.72 points, marking a gain of 1,721.41 points or 1.37%.

Investor interest was particularly high in key sectors such as automobile assemblers, commercial banks, oil and gas exploration, and power generation.

Major stocks including HUBCO, MARI, PRL, POL, MCB, MEBL, and NBP all traded positively.

This rally follows a robust close to the previous fiscal year, as the PSX ended Monday’s session, the last trading day of FY 2024-25, on a high note.

It is driven by strong year-end portfolio inflows, active institutional buying, and a positive external financing development, the KSE-100 Index surged 1,248.25 points, or 1%, closing at a record 125,627.31 points.

Meanwhile, on the global stage, Asian stock markets posted modest gains while the U.S. dollar hovered near multi-year lows.

Investors were closely watching developments around U.S. President Donald Trump’s proposed tax and spending legislation, which faced extended debate in the Senate.

The bill, expected to add $3.3 trillion to the national debt, stirred caution among global investors.

Japan’s Nikkei Index dropped as much as 1.1% due to a stronger yen, while oil prices fell for a second straight session. Gold, on the other hand, edged higher.

South Korea’s Kospi Index led regional gains, rising 1.8%, helping lift MSCI’s broadest Asia-Pacific index outside Japan by 0.5%.

Market participants remain focused on upcoming US labour data due Thursday, which analysts believe will heavily influence expectations regarding future Federal Reserve interest rate cuts.

President Trump aims to pass his sweeping tax-and-spending bill before the July 4 Independence Day holiday, adding to the global market’s cautious optimism and uncertainty.