Asian stocks extended their rally to a fresh record, buoyed by a rebound in US technology shares that helped ease pressure on global markets following recent concerns over heavy spending on artificial intelligence.
The MSCI Asia Pacific Index rose 1.1 per cent, with major technology stocks leading the gains. Shares of SoftBank Group Corp. and Taiwan Semiconductor Manufacturing Company were among the top performers, reflecting renewed investor appetite for tech equities.
In Japan, the Nikkei 225 Index continued its election-driven surge, climbing 2.5 per cent to reach an all-time high. The benchmark has been one of the strongest performers in the region amid improving investor confidence and supportive domestic factors.
However, the rally is facing an early test, as US and European equity-index futures edged lower after the S&P 500 closed near a record high on Monday, signaling cautious sentiment ahead of upcoming macroeconomic data.
In currency markets, the Chinese yuan strengthened to its highest level since May 2023, following reports that China had asked banks to limit their holdings of US Treasuries. The development added pressure on the US dollar, which extended its losses for a third consecutive session.
Meanwhile, gold prices declined after two days of gains, as investors took profits in a volatile market still searching for stability following a historic sell-off.
Market analysts noted that the renewed gains in equities suggest easing concerns around the artificial intelligence trade, which had intensified over the past two weeks, weighing heavily on software firms and high-spending technology companies.
As the AI-related volatility subsides, investors are now turning their attention to key US economic data releases that could influence expectations around the Federal Reserve’s future interest-rate path.
