Asian stocks rose for the first time in five days as investors returned to artificial intelligence-related trading, while a series of tech company IPOs boosted market enthusiasm for the sector.
The Korea Composite Stock Price Index (KOSPI) is a key barometer for artificial intelligence investments, rising more than 6% on this momentum. Samsung Electronics, the chip giant, surged 7% after avoiding a strike, hitting an intraday high. SoftBank Group’s shares jumped 20% in Tokyo following reports that OpenAI is preparing to file for an initial public offering (IPO). Market enthusiasm for tech stocks was further boosted by SpaceX’s IPO filing.
The rise in tech stocks lifted the MSCI Asia-Pacific index by 2.6%. Earlier, U.S. President Trump said on Wednesday that talks between the United States and Iran had entered a “final phase,” boosting market expectations for a near-term resumption of energy flows through the Strait of Hormuz and sending Wall Street markets higher. The news led to a drop in oil prices on Wednesday, eased inflation concerns, and subsequently drove a rebound in bond markets.
Asian stock markets are rebounding from recent declines triggered by concerns over overvaluation due to rising global bond yields and AI-driven market rallies. Investors have also been grappling with inflation risks stemming from high oil prices, which have dampened expectations for central bank rate cuts and reignited worries that borrowing costs could rise further.
Jason Thomas, global head of research and investment strategy at Carlyle Group, said on Bloomberg Television: “The momentum behind artificial intelligence is very strong, with significant growth in corporate profitability and downstream applications of AI.”
On Wednesday, the S&P 500 rose more than 1%, the Nasdaq-100 index, dominated by tech stocks, gained 1.7%, and the chip sector index surged 4.5%.
Traders have reduced their bets on the Federal Reserve raising interest rates by year-end. They still expect the Fed’s next move to be a rate hike, a stark contrast to the multiple rate cuts that occurred before the U.S. attacked Iran in late February.
Technical Analysis:
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Gold: Prices avoided further lows and rebounded to test the level around 4550. A dense liquidity zone lies in the 4510/4530 area; watch whether a pullback occurs before the next rally begins. For detailed positioning, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Yesterday’s price broke above our blue zone, retested 29,050 before pulling back to confirm, then launched an upward move beyond 29,300. Today, we expect the price to continue breaking through the overnight high, completing a breakout (BOS), after which a pullback buy would be ideal. Meanwhile, keep one lot near 28,900 for a low entry following liquidity sweep. For detailed levels, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Prices have retraced from 108 to the 100 level, with key resistance for intraday rebound in the 105-106 area. If prices encounter resistance and pull back at this level, we suggest attempting one sell trade. For detailed positioning, please consult the plugin.
(Crude Oil 15-minute Chart)
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Today’s key financial data and events to watch:
20:30 U.S. Initial Jobless Claims for the Week Ended May 9 (in thousands)
20:30 U.S. April Retail Sales Month-on-Month
