Asian stocks climbed, with MSCI Inc.’s gauge of Asian shares rising 1% for a fifth consecutive day of gains. Chipmakers such as Samsung Electronics Co. and SK Hynix Inc. were key contributors to this advance, with South Korea’s Kospi Index jumping 1.6% and Taiwan’s stock index reaching an intraday record. This rally was fueled by early signs of success for Meta Platforms Inc.’s new artificial intelligence agent, which reinvigorated investor optimism for stronger semiconductor demand. The previous day, an index of US semiconductor stocks surged over 4%, with Meta itself climbing 11% and Advanced Micro Devices Inc. (AMD) surpassing $1 trillion in market value, leading the S&P 500 and Nasdaq 100 to their best sessions since early August.
Analysts attributed the market's enthusiasm to Meta's AI chatbot, which has generated strong demand and rekindled optimism for the "AI trade." Kyle Rodda, a senior analyst at Capital.com, noted that robust AI demand should improve sentiment across the AI ecosystem, particularly for chips, subsequently benefiting Asian tech. S&P 500 futures remained steady, and Nasdaq 100 contracts edged up 0.3%. Brent crude edged higher to trade around $101 a barrel after four straight sessions of declines, while Bitcoin fell approximately 1.5% to $85,598.29.
Meanwhile, US and Chinese officials concluded a second day of talks in New York, focusing on artificial intelligence, investment, and trade. These discussions are laying the groundwork for a summit between US President Donald Trump and Chinese President Xi Jinping later in the week. US Treasury Secretary Scott Bessent described the talks as "very successful" and announced an agreement to establish a "US-China AI dialogue" to foster a common understanding of AI's goals and threats. China’s Vice Finance Minister Liao Min also confirmed progress, stating that talks focused on implementing previously agreed points. The trade truce between the two nations is set to expire in November, and US Trade Representative Jamieson Greer indicated a possible three to six-month extension, with trade, AI, and geopolitics expected to dominate the Trump-Xi agenda.
