Asia shares surge on tech mood swing, oil retreats

Asian stock markets surged on August 5, 2021, driven by strong earnings reports and increased demand for technology stocks, pushing Wall Street to new record highs. Japan's Nikkei climbed 3.0 percent and South Korea contributed 3.4 percent, maintaining a volatile trend. The MSCI Asia-Pacific index, excluding Japan, rose 1.5 percent. Investors profited from Advanced Micro Devices (AMD), even as its results exceeded expectations, resulting in a 9 percent drop in the chipmaker's shares.

However, the momentum waned for artificial intelligence (AI) stocks, including SpaceX, amid concerns over substantial capital expenditures (capex) spending. Broker Chris Weston noted that SpaceX's ambitious investment program necessitates additional funding, which could impact investors in the coming quarters.

The Nasdaq and S&P 500 futures declined slightly, while Euro Stoxx 50, DAX, and FTSE futures gained. Oil prices, on the other hand, declined, alleviating inflation concerns and boosting global bond yields. 10-year Treasury yields fell to 4.6187 percent, down from last week's peak of 4.747 percent, and market participants lowered their expectations of a September Federal Reserve rate hike to 57 percent.

Currencies exhibited subdued movement, with the New Zealand dollar slipping slightly due to increased unemployment and the euro remaining relatively stable. U.S. Treasury Secretary Scott Bessent expressed confidence in the Bank of Japan's Governor Kazuo Ueda, suggesting further interest rate hikes were a possibility.