Asian Stocks Rise, AI Optimism Mitigate Middle East Risks
Asian stocks rose in Tuesday's trading, buoyed by positive sentiment on artificial intelligence (AI) issues, despite the lack of a deal in US-Iran peace talks. Indexes in Japan, South Korea, and Australia rose, pushing the MSCI Asia Pacific Index up 0.3% after Wall Street closed higher at a new record and the Philadelphia Semiconductor Index surged 2.6% to an all-time high.
In energy markets, oil remained strong. WTI held above US$98 per barrel after US President Donald Trump called the ceasefire with Iran on "massive life support" and rejected Tehran's latest peace proposal, while Brent rose 0.3%. The rise in oil also weighed on the bond market as market participants reduced expectations for a Fed interest rate cut this year, reflected in the 10-year Treasury yield, which rose 6 basis points to 4.41% on Monday.
Market focus was also on US inflation (CPI) data to assess the impact of the conflict on price pressures. Several Wall Street banks have postponed their projections for interest rate cuts, arguing that inflation and the labor market remain strong enough for the Fed to potentially hold rates at least until the end of the year.
Meanwhile, global equity gains are still believed to be supported by the prospect of AI spending, particularly in Asia, which is helping maintain corporate profit growth despite ongoing geopolitical risks. However, concerns remain if oil prices remain high and trigger potential supply disruptions, particularly if the situation in the Strait of Hormuz continues to escalate. (asd)
Source: Newsmaker.id
