Global Market Today: Asian shares, US futures rise on AI-trade revival
The MSCI Asia Pacific Index climbed 0.6% with shares gaining in South Korea and Japan. The Kospi Index rose 1.9%, rebounding after one of the country’s worst IPO debuts on record.
Asian shares and US equity-index futures gained as strong earnings from major beneficiaries of the artificial intelligence boom reinvigorated optimism about the tech trade. The MSCI Asia Pacific Index increased by 0.6% with gains in South Korean and Japanese stocks. Nasdaq 100 futures rose 0.7% following SpaceX's strong quarterly earnings, which more than doubled estimates, pushing its shares up around 7% in after-hours trading.
Super Micro Computer Inc. also exceeded expectations, causing AI infrastructure shares to climb in extended trading.
Super Micro Computer Inc. shares jumped 15% in after-market trading, while Netflix Inc. fell after releasing disappointing forecasts. In Australia, Nextdc Ltd. shares fell 44% after the data-center developer lowered its outlook and restarted its capital expenditure program.
Oil prices stabilized after a volatile Tuesday, with Brent crude rising 0.7% to trade close to $109.50 a barrel early Wednesday. Long-term Treasuries outperformed during the New York session, putting pressure on the dollar.
The earnings from tech companies provided some reassurance after worries about high AI valuations and financing unsettled technology stocks last week, shifting focus to a busy earnings schedule for evidence that growth can justify the substantial investments in computing infrastructure. Meta Platforms Inc. and Tesla Inc. are scheduled to report earnings on Wednesday.
Analysts expressed optimism, stating that clear earnings beats and positive corporate updates were easing some AI-related anxiety that had emerged in recent sessions. However, market participants remain skeptical of the AI sector, with billionaire Ken Griffin warning that investors are "almost certainly" in an AI bubble. Some companies are still uncertain about how much to allocate towards AI technology and its potential to reshape the economy.
Meanwhile, Elon Musk's satellite, rocket, and AI conglomerate reported $4.4 billion in net income for the quarter ended September, surpassing analysts' average estimates and revenue surged 161% from the previous year. Musk also revealed that SpaceX and Tesla Inc. have established special committees to explore a possible merger, a preliminary stage towards what would be the largest corporate tie-up in history.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
