Wall Street Closes Higher, Asia Rises in Unison
Asian stocks rallied since the opening of trading after a rebound in the technology sector and solid US economic data pushed Wall Street higher. The US dollar also pared some of its gains after the American trading session.
The MSCI Asia Pacific Index rose for a second day, supported by a rally in Australian and Japanese stocks. South Korean stocks even touched a record high, while sentiment was carried over from the US, where the S&P 500 rose 0.6% and the Nasdaq 100 strengthened 0.8%. Markets in mainland China, Hong Kong, and Taiwan remained closed for the Lunar New Year holiday.
The gains in New York signaled that concerns about "disruption" in the AI sector were beginning to ease, and some investors were starting to look for buying opportunities after the correction. Some market participants considered the previous sell-off in software stocks to be excessive and more of a knee-jerk reaction.
In the currency market, the dollar weakened slightly against most major G-10 currencies in Asian trading, after the Bloomberg dollar indicator briefly rose 0.5% on Wednesday. Meanwhile, US Treasury yields remained relatively flat after falling in the New York session, when an auction of US$16 billion in 20-year US bonds met with weak demand.
The market is also keeping an eye on Thursday's Asian agenda, including Australian labor data and interest rate decisions in the Philippines and Indonesia. From the US, sentiment was supported by data showing industrial production recorded its largest increase in nearly a year, business equipment orders rose more than expected, and housing starts hit a five-month high.
However, the Fed's meeting minutes showed some officials wanted a more hawkish statement, leaving open the possibility of a rate hike if inflation remains high. Fed Funds futures prices indicated the market had slightly reduced expectations for a rate cut, but still priced in two 25 bps cuts in 2026. In commodities, oil stabilized after its biggest daily surge since October amid speculation about Iran risks, while gold traded slightly lower after surging 2% the previous day as the market awaited the Fed's interest rate direction. (asd)
Source: Newsmaker.id
