Asian stocks surge as Anthropic IPO lifts sentiment ahead of earnings, central banks

Asian stocks experienced a significant surge on Tuesday, driven by the anticipation of artificial intelligence (AI) company Anthropic's highly-anticipated initial public offering (IPO) and central bank meetings that may influence near-term interest rates. The AI-focused firm disclosed substantial losses alongside explosive revenue growth, highlighting the potential payoff from massive AI investments and its profitability.

Meta Platforms also announced plans to raise up to $95 billion in its largest-ever equity fundraising, further bolstering risk appetite.

Investors' attention was primarily focused on the upcoming earnings reports from tech giants, as they would serve as a crucial test for the AI sector. Meanwhile, central bank meetings were expected to provide insights into near-term interest rates, with economists anticipating that the US Federal Reserve, European Central Bank, and Bank of Japan would keep rates steady.

Tech-heavy South Korea's Kospi index rose by more than 4%, while Japan's Nikkei was up 1.9%. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.2%. Nasdaq futures saw a 0.4% increase after US chip stocks rose 2.8% in overnight trading, marking its biggest one-day gain in a month. European stock futures, however, dipped by 0.23%.

Despite the overall positive sentiment, Brent crude futures saw a 0.7% drop, falling from a six-month high, as investors questioned the potential resolution of the US-Israeli war with Iran. This uncertainty in oil prices continued to fuel inflation concerns and left the global interest rates outlook vulnerable. The area's ongoing conflict had directly impacted oil prices, exacerbating inflation concerns and shifting the focus on central bank decisions.

Economists remain divided on the US economy's ability to withstand higher interest rates. While some believe the US can manage through the rate increase, others argue that the risk of an interest rate hike in the near future remains uncertain. Meanwhile, the Japanese yen has been the preferred currency in the markets, with the Bank of Japan (BOJ) expected to announce its stance on interest rates on Friday. In commodities, gold prices edged lower, settling at $4,013.70 per ounce.