Global Market Today | Asian stocks rise after tech boosts US equities

Synopsis

Asian stocks climbed for a second day, mirroring a rebound in US tech shares and strong economic data. Oil prices held onto recent gains, marking their largest increase since October. Investors are reassessing the impact of artificial intelligence on tech companies, with some believing the recent selloff was an overreaction.

Asian stocks advanced after a rebound in tech and robust economic data boosted US equities. Oil held gains after its biggest jump since October.

The MSCI Asia Pacific Index gained for a second day, as shares rallied in Australia and Japan, and South Korea’s benchmark rose to a record. That was after the S&P 500 gained 0.6% Wednesday and the tech-heavy Nasdaq 100 climbed 0.8%. Financial markets remained shut in mainland China, Hong Kong and Taiwan for the Lunar New Year holiday.

The rebound in tech shares offered a sign that concern over the disruption of artificial intelligence were easing, just as several stock pickers surveyed the wreckage for buying opportunities.

The software stock selloff is likely “overdone” as that was a largely knee-jerk reaction, with investors trying to figure out the winners and losers from AI, said Paul Stanley, managing partner at Granite Bay Wealth Management. “While AI is very promising, investors should not assume that all companies will win on the AI front.”

Oil steadied in Asia after jumping Wednesday following a report that American military intervention in Iran may come sooner than expected.

West Texas Intermediate traded above $65 a barrel after gaining 4.6% on Wednesday, while Brent crude closed above $70 for the first time in more than two weeks. Axios reported that any US military operation would likely be a weeks-long campaign and that Israel’s government is pushing for a scenario targeting regime change in the Islamic Republic.

The dollar edged lower versus most of its Group-of-10 peers after Bloomberg’s gauge of the greenback gained 0.5% on Wednesday. Treasuries were little changed after dropping in the New York session, when a $16 billion sale of 20-year bonds drew lackluster demand.

US economic data published Wednesday showing the biggest increase in US industrial production in January bolstered investor sentiment, while orders for business equipment rose in December by more than projected and housing starts hit a five-month high.

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