Asian stock markets hit new highs as investors increasingly bet on artificial intelligence-related trades, which have been a key driver behind the global equity surge. The yen hovered around 160 against the U.S. dollar.
The MSCI Asia-Pacific Index rose 0.7%, hitting a record high, led by technology stocks, with chipmaker Tokyo Electron’s shares surging 10%. The Taiwan Weighted Index climbed 1.8% to a new all-time high, as TSMC shares also reached their peak. South Korea’s stock market was closed for the holiday.
Asian stocks rose after the S&P 500 and Nasdaq 100 hit record highs, with the chipmakers index gaining nearly 6%. Technology stocks remained the market’s focus, as SpaceX sought a $75 billion initial public offering at $135 per share, according to Reuters.
Nevertheless, due to pessimism over the prospects of a peace deal between the United States and Iran, as well as renewed conflict in the Middle East, Brent crude oil prices rose 1% to $97 per barrel, as cautious sentiment began to spread.
Investors have flocked to artificial intelligence-related stocks, pushing global equities to record highs. Additionally, market expectations of an agreement to end the war have further boosted global markets. Traders are overlooking concerns about overvaluation, betting that strong earnings growth and easing geopolitical tensions will continue to support risk assets.
Technology stocks continue to dominate the market. This trend remains positive, and a deal with Iran could bring additional tangible benefits.
In other market sectors, as inflation concerns intensified and expectations grew that borrowing costs would remain high for an extended period, gold prices dipped slightly to around $4,480 per ounce. Bitcoin also fell to approximately $66,500.
U.S. Treasury prices edged lower, with the 10-year yield rising one basis point to 4.45%. The first of three labor market reports due this week further reinforced market expectations that the Federal Reserve will raise interest rates next.
Technical Analysis:
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Gold: Yesterday, we clearly advised a buy stop above 4500; additionally, we suggested catching the rebound after testing liquidity at 4470. In hindsight, both strategies were perfectly successful. For today, we recommend waiting for a clear recovery above 4500/4520 before considering a pullback buy. For detailed entry levels, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Liquidity in the 30,200/30,100 zone has not triggered again; prices extended overnight and are currently consolidating. Keep two lots ready for today: go long if the consolidation breaks out, but strictly manage risk-reward ratio and position size. Also retain the strategy of buying the rebound after liquidity is swept at the lower yellow level. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Overnight prices did not drop to 91.65, so our sell limit order was not triggered. Subsequently, prices fluctuated and rose above 97. For the day, we will continue monitoring the breakout of the near-term key demand zone. If a breakout occurs, we will proceed with another sell limit order on the pullback. For detailed levels, please consult the plugin.
(Crude Oil 15-minute Chart)
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Today’s key financial data and events to watch:
20:15 U.S. May ADP Employment Change (in thousands)
22:00 U.S. May ISM Non-Manufacturing PMI
