Asian Markets Rise as AI Technology Stocks Soar: Wall Street Hits Record Highs

The frenzy around artificial intelligence technology continues to drive stock markets higher, with Asian markets rising on Thursday following Wall Street’s record-breaking performance.

In Tokyo, the Nikkei 225 index climbed 0.9%, while the Hang Seng in Hong Kong and the Shanghai Composite index also saw gains. Australia’s S&P/ASX 200 and Taiwan’s Taiex surged, with the latter benefiting from contract electronics maker Foxconn’s strong performance.

The rally in tech stocks, led by Nvidia, pushed the company’s market value above $3 trillion for the first time. Nvidia’s chips are powering much of the AI boom, contributing to its impressive gain of more than 147% for the year.

While tech stocks soared, retail industry challenges were highlighted by Dollar Tree’s 4.9% drop and its consideration of selling or spinning off its Family Dollar business. The broader retail industry is facing obstacles due to high inflation affecting lower-income households.

Treasury yields fell following mixed economic data, with reports showing growth in the U.S. services sector but slower hiring at U.S. employers. The possibility of a slowdown in the economy has raised expectations for rate cuts by the Federal Reserve, driving Treasury yields lower.

The upcoming U.S. government jobs report on Friday will provide further insight into the state of the economy. In the meantime, U.S. benchmark crude oil prices rose, while the U.S. dollar weakened against the Japanese yen and the euro strengthened.

Overall, the market remains optimistic about the future, with hopes for a controlled slowdown in job market growth and continued gains in the tech sector driving investor sentiment.