Tech Rebounds, Yuan Gains & Stocks Approach Record- Asia Market Wrap

Equities extended their climb to an all-time high as a comeback in US technology shares gained traction, alleviating market pressures following concerns about excessive expenditure on AI.

The MSCI All Country World Index, one of the broadest indicators of the equity market, climbed 0.2% to a record as Asian equities surged 1.3% to an all-time high, powered by tech companies such as SoftBank Group The rally will be tested later Tuesday, with US and European equity-index futures flat after the S&P 500 finished near a high on Monday.

In other news, the Yuan rose to its highest level since May 2023 after China reportedly directed banks to restrict their holdings of US Treasuries. The Dollar was barely changed, while gold dipped after two days of gains, as investors took profits in a volatile market still looking for a floor after a historic loss.

The rises in shares signalled a reduction in fears about the AI trade, which had flared up in the previous two weeks, slamming software companies and putting a fog over high-spending tech giants. While that plays out, traders are waiting for critical US economic data that will impact expectations for the Fed’s interest-rate path.

Following PM Takaichi’s historic election victory over the weekend, the Yen rose 0.4% and is still trading around 155 per dollar. Bitcoin fell below $70,000, while the Pound remained stable as Starmer solidified his position as UK prime minister.