As Tech Momentum Grows, Stocks Continue Their Record Rally – Asia Market Wrap
The record-breaking stock rise got new traction as fears about overheating in the tech sector faded following the release of shocking results from a chip bellwether.
Asian stocks climbed 0.5% to a record high as TSMC’s earnings boosted investor interest in the AI theme. The chipmaker, as well as a regional tech stock index, set new records. The Nasdaq 100 Index futures increased 0.4%, indicating that optimism is likely to continue. European market futures, meanwhile, pointed to significant losses.
Meanwhile, the Yen rose 0.2% against the Dollar after Japan’s finance minister expressed concern over the currency’s weakness. Oil experienced its steepest drop since June, while gold and silver dipped down.
Stocks rose as investors increased their trust in the long-term viability of the tech boom, a key bull-market driver, following recent concerns over stretched valuations and hefty spending. Equities have rallied from their April lows, boosted by Fed interest rate reduction and optimism about AI-supported profitability.
Separately, the US and Taiwan reached a long-awaited trade agreement that will reduce tariffs on imports from the self-governing island to 15% and allow Taiwanese semiconductor businesses to raise financing for American operations by $500 billion. In other market developments, Treasuries were little changed in Asia after dipping in US trading after unemployment claims unexpectedly fell to their lowest level since November.
