Asian Shares Hit Fresh Highs on AI Momentum, Despite US Shutdown Risks – Asia Market Wrap
A record-setting rally in world equities spilled over into Asian markets, with shares climbing after OpenAI struck a deal with South Korea’s biggest chipmakers — a move that further fueled the frenzy surrounding artificial intelligence.
The MSCI Asia Pacific Index gained 1%, surpassing a record close set last month, led by semiconductor-linked technology firms. Samsung Electronics Co. jumped 4.5% and SK Hynix Inc. surged 11% after joining OpenAI’s Stargate initiative, lifting South Korean equities to unprecedented highs. The advance followed fresh peaks for the S&P 500, Nasdaq 100 and MSCI’s global benchmark. Futures for US and European indexes signaled more upside.
OpenAI also wrapped up a secondary share sale at a landmark $500 billion valuation, cementing its status as the world’s most valuable startup.
The AI wave — coupled with massive corporate spending — has powered stocks to all-time highs since April’s downturn. Investors have largely brushed off Washington’s budget standoff, which triggered the first federal shutdown in seven years and threatens to delay key economic reports critical for the Federal Reserve’s rate decisions.
Elsewhere, Treasuries steadied after private payrolls data bolstered wagers on a Fed rate cut this month. The dollar was flat, while gold consolidated after a five-day streak of record-breaking gains. In Japan, bond futures erased earlier advances as demand weakened at a 10-year debt auction.
On Wednesday, OpenAI’s Sam Altman signed a letter of intent with Samsung and SK Hynix to support his global data-center buildout — a massive effort involving industry giants from Nvidia Corp. to Oracle Corp. The push to construct next-generation AI infrastructure is expected to cost trillions of dollars and demand vast quantities of chips, servers, cooling systems and electricity.
Altman’s next stop is Taipei, where he’s set to meet with Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co., according to local reports.
