[ad_1]
(Bloomberg) — Asian stocks rose for a second straight day on Friday, boosted by the global equity rally that has seen markets from the U.S. to Europe and Japan hit record highs.
Bloomberg’s Most Read
Australian, Taiwanese and South Korean stocks advanced. Japanese markets are closed on Friday because it is a holiday.
China remained an exception. The CSI 300 index was on track for its first decline in nine sessions, and both it and Hong Kong’s Hang Seng Index went from rising to falling.
The largely bullish sentiment in Asia followed overnight gains in the US, where the S&P 500 and Nasdaq 100 indices, along with the MSCI all-county index, closed at new records. An upbeat outlook for Nvidia Corp., the most valuable chipmaker, helped it rise 16% amid artificial intelligence mania, while new data showed the world’s largest economy is still going strong.
Nvidia’s $277 billion one-day gain to its market capitalization on Thursday was the biggest single-session gain in value ever recorded, eclipsing a recent $197 billion gain by Meta Platforms Inc.
“The main catalyst for markets, absent rate cuts later in the year, would necessarily be earnings, and here Nvidia wowed investors and traders alike,” said Quincy Krosby, chief global strategist at LPL Financial. “It became clear from the top down, and right down to the bottom, that the demand for AI infrastructure is growing exponentially.”
The Hang Seng Mainland Properties Index rose for the fourth consecutive day amid the first signs of improvement in the country’s real estate sector in 10 months. Home prices in China declined at a slower pace for both new and existing units in January, according to data released Friday.
Markets were also looking at signs that China’s economic slowdown is taking hold, with data released on Thursday showing the number of foreclosed properties for sale in China rose at a faster pace in January.
“Chinese authorities can’t live with such a weak stock market, but I think it’s really just a trade rally,” said Garry Evans, chief global asset allocation strategist at BCA Research. “At the moment, China’s economy still looks very weak.”
Back in the US, traders took the Fed’s more hawkish comments in stride. 10-year Treasury yields were little changed Thursday at 4.32%. Cash Treasury bond trading is closed in Asia on Friday due to the Japanese holiday.
“At some point, as we become more confident that disinflation is ongoing and sustainable, that change in outlook will justify a change in the policy rate,” Federal Reserve Governor Lisa Cook said at an event at the Princeton University.
Rise of AI computing
Nvidia’s market capitalization has risen by more than $700 billion this year (and is now worth more than $1.9 trillion), as investors bet the company will remain the biggest beneficiary of a boom in AI computing.
The tech rally has driven the Nasdaq 100’s valuation to an all-time high, with a similar outlook for the S&P 500. Elevated valuations could ultimately hold back further gains as investors weigh how much they are willing to to pay for shares valued in the future. growth.
In commodities, oil fell as investors weighed signs of a market tightening against lingering demand concerns. Gold fluctuated after US economic data and Federal Reserve minutes, which indicated policymakers are happy to leave rates higher for longer if necessary.
In corporate news, Standard Chartered Plc announced a $1 billion share buyback along with fourth-quarter earnings that topped analyst estimates.
This week’s key events:
-
Germany IFO business climate, GDP, Friday
-
The ECB publishes its survey on inflation expectations in 1 and 3 years on Friday
Some of the main movements in the markets:
Stocks
-
S&P 500 futures were little changed at 1:02 p.m. Tokyo time.
-
Australia’s S&P/ASX 200 rose 0.3%
-
Hong Kong’s Hang Seng fell 0.2%
-
The Shanghai Composite hardly changed
Coins
-
Bloomberg Dollar Spot Index Little Changed
-
The euro was little changed at $1.0825
-
The Japanese yen barely changed at 150.48 per dollar.
-
The offshore yuan was little changed at 7.2069 per dollar.
CRYPTOCURRENCIES
-
Bitcoin fell 1.2% to $51,045.95
-
Ether fell 1.2% to $2,949.86.
Captivity
-
The yield on the 10-year Treasury bond barely changed, standing at 4.32%.
-
The 10-year Japanese bond yield barely changed at 0.715%
-
Australia’s 10-year yield rose four basis points to 4.19%
Raw Materials
This story was produced with the help of Bloomberg Automation.
Most Read Bloomberg Businessweek
©2024 Bloomberg LP