Global Market Today: Asian stocks hold near record highs, oil climbs

Asian stocks maintained near record highs today as Wall Street benchmarks reached all-time highs, buoyed by optimism regarding corporate earnings. The MSCI’s Asia Pacific equities index rose 0.1%, driven by gains in Japan, while South Korean shares rebounded from an early decline to climb 0.2%. The regional benchmark fell just shy of its peak.

The surge followed record closes for the S&P 500 and Nasdaq 100 Index ahead of the US earnings season. Artificial intelligence-related stocks led the rally, with Nvidia Corp.'s market value nearing $6 trillion. Tech stocks continued to dominate attention following a Financial Times report that SpaceX aimed to raise $40 billion to acquire Nvidia chips.

Brent crude oil prices climbed 0.8% to surpass $101 a barrel in early Asian trading, as traders balanced rising flows through the Strait of Hormuz against a resurgence in Iranian attacks on vessels. Global equities are hovering close to record highs, with investors betting that companies can endure higher interest rates and energy costs.

With the economic data calendar relatively quiet, focus will shift to the impending earnings season for clues on whether billions of dollars in AI-related spending by tech firms is translating into improved profits.

Investors remain confident that hundreds of billions in AI-related spending will yield stronger company profits. Goldman Sachs strategists, led by Ben Snider, noted that recent economic growth has been solid and that the S&P 500's earnings revisions have remained positive. Most firms are anticipated to outperform consensus earnings estimates this quarter.