Silver Soars, Stocks Continue Record-Breaking Rally – Asia Market Wrap
Asian equities reached a new high, led by Chinese technology companies, as investors sought out regional stocks with more appealing values.
The MSCI Asia Pacific Index climbed 1.1%, with a barometer of Hong Kong-listed Chinese technology equities reaching its highest level since November. Shanghai shares were set to close at their highest level since 2015. Equity-index futures in the US and Europe also rose, indicating that the rise will have more room to run.
Investors have continued to add to stocks, seemingly unaffected by tensions in Venezuela, extending a three-year bull run fuelled by demand for technology and AI-related businesses. Equities have recovered from their April lows, boosted by Fed rate cuts and optimism about AI-supported profitability.
Even after the surge, Asian shares remain substantially cheaper than US tech companies. The MSCI regional equities index has a price-to-earnings ratio of 15, compared to 22 for the S&P 500 Index and 25 for the Nasdaq 100 Index.
Precious metals recovered from their early weakness. Gold rose 0.3% to above $4,460 per ounce, while silver soared 3.1%. These commodities rose on Monday following the US abduction of Venezuelan President Maduro. Oil prices have stabilised following their largest increase in a week.
