Asian stocks climbed significantly, with MSCI Inc.’s gauge of Asian shares rising 0.9%, marking a fifth consecutive day of gains. This surge was primarily fueled by optimism surrounding artificial intelligence, particularly following early signs of success for Meta Platforms Inc.’s new AI agent. Semiconductor companies like Samsung Electronics Co. and SK Hynix Inc. saw substantial jumps, mirroring Monday's rally on Wall Street.
Sentiment in the tech sector received an additional boost from announcements by major Chinese tech firms. Alibaba Group Holding Ltd. revealed what it described as China's most powerful AI chip, designed to compete with Nvidia Corp., leading to a rally in its shares in Hong Kong. Tencent Holdings Ltd. also contributed to the positive momentum by launching its latest image-generation model, with its shares also rising.
The global impact of AI optimism was evident as an index of US semiconductor stocks rallied over 4% on Monday. Meta Platforms Inc. surged 11% and Advanced Micro Devices Inc. exceeded $1 trillion in market value, contributing to the S&P 500 and Nasdaq 100 capping their best days since early August. Analysts, such as Kyle Rodda of Capital.com, highlighted Meta’s new AI chatbot as a key catalyst, reinforcing confidence in the AI ecosystem, especially for chip demand.
While AI-driven tech stocks dominated the positive market sentiment, other sectors also saw movement. Brent crude oil rose about 0.9% to trade above $101 a barrel, rebounding after four consecutive sessions of declines. Conversely, Bitcoin experienced a slight fall of about 1.5% after a strong surge of over 7% in the previous session, where it climbed above $87,000, as investors re-evaluated riskier assets. Futures for the S&P 500 remained steady, while Nasdaq 100 contracts edged up 0.3%.
