Asian Stocks Rally; Yen Remains Strong
Asian stock markets rose during Friday's trading (July 31) as a surge in South Korean technology stocks reignited optimism regarding the artificial intelligence sector. Gains were also supported by the Japanese market, pushing the Asia-Pacific stock index up for a second consecutive day.
South Korea's Kospi index jumped more than 14% after previously suffering losses for three straight days. Shares of major chipmakers like SK Hynix and Samsung Electronics led the rally as investors once again sought out companies linked to AI development.
Positive sentiment stemmed from Wall Street, where the semiconductor stock index recorded its largest gain in over a year. Microsoft shares surged, while Amazon also rose following growth in its cloud computing business. However, Apple shares fell as supply constraints weighed on sales projections.
In currency markets, the yen held onto its gains after Japanese authorities intervened again to support the currency. Investors are now awaiting the Bank of Japan's decision—widely expected to maintain current interest rates—while looking for clues regarding the likelihood of future rate hikes.
Meanwhile, the US dollar remained under pressure after the Federal Reserve held interest rates steady. However, yields on long-term US government bonds continued to rise as the market assessed that inflation remains high and tight interest rate policies could persist for longer.
Oil prices edged slightly higher as the market weighed the conflict between the United States and Iran alongside shipping conditions in the Strait of Hormuz. Overall, the direction of Asian markets will continue to be influenced by developments in tech stocks, the Bank of Japan's decision, movements in the yen, and geopolitical tensions. (asd)*
Source: Newsmaker.id
