Tokyo, Japan – Asian stocks rose for the second consecutive day on Friday, following a surge in global equities markets. This surge has been seen in markets across the US, Europe, and Japan, all reaching record highs.
Australian, Taiwanese, and South Korean equities all saw gains, while Japanese markets were closed for a public holiday. However, in China, the CSI 300 Index was on track for its first drop in nine sessions, and both it and Hong Kong’s Hang Seng Index experienced fluctuations.
The bullish sentiment in Asia followed gains in the US, as the S&P 500 and Nasdaq 100 indexes, along with MSCI’s all-country index, closed at new records. The boost in optimism was partly driven by the strong performance of Nvidia Corp, the most valuable chipmaker, which surged 16% due to the growing demand for AI infrastructure.
In addition, Hong Kong’s Mainland Properties Index continued to gain, signaling the first signs of improvement in China’s property sector in 10 months.
While Asian markets remained largely optimistic, there were signs of concern regarding China’s economic slowdown. Data released on Thursday showed a faster pace of foreclosed properties for sale in China in January.
Back in the US, traders reacted calmly to more hawkish Federal Reserve commentary, and Treasury 10-year yields remained little changed at 4.32% on Thursday. This stability in the markets was maintained despite the absence of trading in cash Treasuries in Asia due to the Japanese holiday.
The continued AI computing boom has led to Nvidia’s market capitalization increase by over $700 billion this year, topping $1.9 trillion. However, this tech rally has led to concerns about lofty valuations and potential limitations on future stock gains.
In the realm of commodities, oil prices slipped, while gold fluctuated after US economic data and Federal Reserve minutes suggested that policymakers are content with keeping rates higher for longer if necessary.
Overall, the global economic landscape is showing signs of both optimism and caution, as investors and traders navigate the implications of various market trends and geopolitical developments.