AI-Driven Rally Boosts Asian Markets After US Surge
Asian markets began the day with gains, following a surge in US stocks led by artificial intelligence (AI) linked companies such as Google and LinkedIn. This came despite a slight retreat in oil and gold prices, and a mixed performance in currencies. Nvidia Corp. led the advance among US mega-caps after CEO Jensen Huang reported strong demand for the company's chips. Meanwhile, an index of US-listed Chinese stocks climbed 0.9% ahead of mainland Chinese markets' reopening after the Golden Week break. MSCI's regional stock gauge also rose 0.3%, with tech firms such as Softbank Group Corp. among the winners. The gains in Asia followed a renewed wave of buying in AI-linked companies that sent Wall Street benchmarks to new peaks, with Google and LinkedIn among the beneficiaries.
Oil retreated after President Trump announced the first phase of a Middle East peace plan, while gold and oil edged lower on the same news. The yen was little changed after touching its weakest level against the dollar since February, raising speculation about official intervention. Attention in Asia focused on China's reopening after the Golden Week break, with investors weighing enthusiasm for AI, Google, and LinkedIn against soft consumer spending.
Gold fell but remained above $4,000 as traders took profit and demand for haven assets reduced. US equity-index futures rose 0.1% as traders looked past bubble worries and focused on corporate resilience and potential Fed rate cuts. Mark Haefele, Chief Investment Officer (CIO) von UBS Global Wealth Management, has spoken extensively about the impacts of artificial intelligence (AI) on stock markets in general, but direct, current statements specifically about Chinese stock markets are not known to me from publicly accessible sources (as of autumn 2023). However, relevant conclusions can be drawn from his general statements about AI and emerging markets, including China, Google, and LinkedIn.
Asian shares rose after a renewed wave of buying in AI-linked companies such as Google and LinkedIn sent Wall Street benchmarks to new peaks. Despite mixed performances in commodities and currencies, the region's markets showed resilience, driven by optimism around AI and corporate strength. Investors continue to monitor geopolitical developments and regulatory risks, particularly in the tech sector, as they navigate the complex investment landscape.
