SYDNEY: Asian stock markets hit fresh highs on Thursday as investors doubled down on AI-related tech, while gold held above $4,000 and the dollar maintained recent strong gains. Oil prices dipped after news of a ceasefire plan between Israel and Hamas eased geopolitical tensions.
US President Donald Trump said he might travel to Egypt this weekend to discuss further steps in the deal.
In equities, a renewed bull run in AI tech pushed the S&P 500 and Nasdaq to record highs, with funds rewarded for buying the dips. JPMorgan analysts noted a strong inflow of multi-billion-dollar investments into AI and raised earnings growth estimates for the tech sector to 20.9% for the upcoming reporting season, up from 15.9% in June. About 81% of tech stocks, led by Nvidia and Apple, have seen earnings estimates rise.
Overall earnings are expected to grow 8% in Q3, with revenues up 6.3%. Japan’s Nikkei rose 1.5%, nearing all-time highs, supported by offshore fund buying of 2.5 trillion yen ($16.4 billion) in the week through October 4. Taiwan’s stocks climbed 1.2% to a record, and MSCI’s Asia-Pacific index excluding Japan rose 0.3%. Chinese blue chips added 0.4% after reopening from a holiday, with consumer spending at 809 billion yuan ($113.52 billion) and 888 million trips reported.
Beijing announced new restrictions on rare earth exports, affecting US trade talks.
Bond markets were calm after Federal Reserve minutes showed caution about inflation risks despite policy easing. Futures imply a 94% chance of a quarter-point rate cut in November and 44 basis points of easing by year-end.
The dollar stayed near eight-month highs against the yen at 152.54, while the euro steadied at $1.1641. Gold remained strong at $4,037 an ounce, boosted by expectations of US rate cuts and demand as a hedge against dollar decline and bond sell-offs.
Oil prices slipped: Brent fell 0.6% to $65.89 a barrel and US crude eased 0.7% to $62.12 after the Israel-Hamas ceasefire news. — Reuters
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