The rally driven by Wall Street’s tech stocks has spread to Asia, as investors flock to companies seen as benefiting from artificial intelligence development. The yen fell to its lowest level against the dollar since 1986.
The MSCI Asia-Pacific index rose 1.4% on the final trading day of the quarter, as gains in semiconductor stocks helped the S&P 500 end a five-day losing streak. Tuesday’s rise lifted the Asian benchmark index to its largest quarterly gain in nearly 17 years. Futures contracts indicate further gains for European and U.S. stock markets.
The Korea Composite Stock Price Index (KOSPI) rose 2.9%, maintaining its position as the best-performing major global index so far this year. Samsung Electronics’ stock surged more than 5%, with a quarterly gain exceeding 100%, while SK Hynix’s shares have risen nearly 240% cumulatively from April to June.
On the other hand, the yen continued its recent decline, falling below the 162-yen-per-dollar level—a milestone drop that is likely to spark unease in Japan and prompt traders to watch for possible government intervention. Japanese Finance Minister Mayumi Kajiyama stated that Japan stands ready to respond appropriately depending on developments in the foreign exchange market.
Global stock markets are poised for their best quarter in nearly six years, as investors flock to companies seen as key beneficiaries of artificial intelligence development—from Asian chipmakers to upstream suppliers. Investors are now turning their attention to Tuesday’s U.S.-Iran talks and Thursday’s release of June’s U.S. non-farm payroll data, which could offer clues on whether the Federal Reserve will maintain high interest rates for an extended period.
After a strong quarterly growth, the next test is stability. The rise in profits, AI demand, and margins must prove that Asia is not merely riding the wave of global AI development, but has become a driving engine behind it.
Asia’s eyes are focused on the yen. While the yen’s depreciation has boosted exporters’ profits and driven Japan’s stock market to record highs, it has also raised import costs, squeezed household spending, and intensified political pressure on Prime Minister Fumio Kishida’s government.
On Monday during New York trading hours, the yen weakened below 161.95 against the dollar, breaking through the previous low reached in July 2024 that had served as a support level for the currency. On Tuesday during Tokyo trading, the yen continued its decline to 162.40, despite appeals from Chief Cabinet Secretary Kihara Minoru. Subsequently, Koichi Katayama’s statement failed to produce an immediate noticeable effect.
Technical Analysis:
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Gold: Tech stocks boosted market optimism, and gold swept through the liquidity below 4,000. However, prices did not break below the low left by last week’s PCE, so we cannot be fully bearish in intraday trading. We recommend watching for bullish signals after prices reclaim and stabilize above 4,000. For detailed positioning, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Yesterday, our plugin clearly indicated that a buy stop should be executed after breaking above the blue zone. The price surged past 29,800, delivering substantial profits. Today, we will continue monitoring the liquidity sweep in the yellow zone. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Prices significantly declined after touching the yellow zone in our plugin yesterday. Today, we continue to monitor signals for shorting following the pullback after liquidity sweeps higher. For detailed levels, please consult the plugin.
(Crude Oil 15-minute Chart)
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Today’s key financial data and events to watch:
22:00 U.S. Conference Board Consumer Confidence Index for June
