Asian Stocks Hit Record as Tech Surge and Japan Vote Lift Sentiment – Asia Market Wrap

Asian stocks pushed to new heights as technology shares powered gains and Japan’s election of a pro-stimulus leader added fresh fuel to the region’s rally.

The MSCI Asia Pacific Index climbed 0.3%, reaching another record, with chipmakers and tech firms leading the advance after Advanced Micro Devices Inc. sealed a landmark deal with OpenAI. Gold gained 0.4% to notch yet another record high as investors sought safety amid escalating political turmoil in the US and Europe. Futures for European and US equity benchmarks were little changed.

Japanese equities extended their surge after Sanae Takaichi’s near-certain path to the prime minister’s office sent the yen tumbling and longer-dated bond yields climbing. Losses in Japanese bond futures eased after a 30-year debt auction attracted solid demand.

Globally, stocks have marched to successive all-time highs, even as worries about a US government shutdown and France’s deepening political crisis have driven investors toward alternative assets like gold and Bitcoin, both now at record levels. Meanwhile, a flurry of AI-linked partnerships among chipmakers has propelled share prices higher — and stirred bubble concerns reminiscent of the late-1990s dot-com boom.

Tech shares continue to anchor the global upswing, with Monday’s AMD-OpenAI alliance marking the latest in a series of big-ticket data-center ventures this year. It follows last month’s revelation that Nvidia Corp. plans to invest up to $100 billion in OpenAI to meet surging demand for AI computing infrastructure.

With China and Hong Kong markets closed Tuesday, focus shifted squarely to Japan. Takaichi’s victory jolted markets Monday, with equities soaring on expectations of larger fiscal stimulus while currencies and bonds weakened. The yen held near the 150-per-dollar threshold, a key psychological level, as options traders turned the least bullish on the currency in over three years, anticipating further weakness under the new administration.