After the AI Selloff and Oil Drops, Stocks Continue to Rise – Asia Market Wrap
Global equities rebounded after a sharp selloff at the start of the week, with investors returning to AI-linked shares as geopolitical tensions eased and valuations became more attractive.
MSCI’s Asia Pacific index rose 2.5%, recovering from its largest decline since March. South Korea’s Kospi led gains, climbing as much as 8% as dip buyers piled back into semiconductor stocks. SK Hynix surged 11%, helping drive a broader recovery across the AI and chip sectors.
The move followed a strong session on Wall Street, where the Nasdaq 100 advanced 1.6% and a semiconductor index gained more than 5%. US equity futures pointed higher again, while European markets were set for a more subdued open.
Sentiment toward the AI trade remained resilient as investors focused on several supportive developments. SpaceX’s IPO was reportedly oversubscribed, Nvidia and SK Hynix agreed to collaborate on next-generation chip development, and Apple’s AI-focused product strategy fueled optimism around future device demand.
Oil prices retreated as tensions in the Middle East showed signs of easing. Brent crude fell 0.8% to around $93.50 a barrel after Iran and Israel signaled a willingness to scale back hostilities, reducing concerns about disruptions to regional stability and global energy supplies.
The Dollar edged lower as risk appetite improved, with investors rotating back into growth assets following the recent bout of volatility. Markets continue to view AI as the dominant investment theme despite growing concerns over valuations and periodic profit-taking.
