Asia Stocks Rise at Open After S&P 500 Hits Record: Markets Wrap

(Bloomberg) — Asian stocks opened higher after US shares and a broader gauge of global equities hit fresh records, helped by the Federal Reserve’s third consecutive interest-rate cut.

MSCI Inc.’s gauge of Asian shares was up 0.5% in early trading, with benchmarks in Japan and Australia rallying about 1%. Shares of SoftBank Group Corp. jumped more than 5% after people with knowledge of the matter said it is studying potential acquisitions including data center operator Switch Inc.

The S&P 500 climbed 0.2% on Thursday. Despite the record highs, some caution for tech names persisted, as Broadcom Inc.’s shares slid in late trading after the chipmaker’s outlook for artificial intelligence revenue failed to meet investors’ lofty expectations. US stock futures were lower on Friday, with contracts on the tech-heavy Nasdaq 100 down 0.2%.

“The momentum should continue into year-end. With rate cuts underway, a new Fed chair on deck, and earnings trending higher, the bull market looks positioned to extend into 2026,” said Gina Bolvin, President of Bolvin Wealth Management Group. “As more companies adopt AI, participation should broaden and sectors beyond the Magnificent Seven may start to show strength.”

Thursday’s action lifted the MSCI All Country World Index — one of the broadest measures of the stock market — to a new closing high. The move placed the global equity benchmark on track for its best year since 2019.

In Asia, Thailand markets will be in focus after Prime Minister Anutin Charnvirakul moved to dissolve parliament, setting the stage for an early election after reports of a key political party backing his minority government moving to withdraw its support.

Yields on 10-year Treasuries edged slightly lower Friday after a small gain on Thursday. Data showed that initial jobless claims rose more than expected in the Dec. 6 week. An index of the dollar, meanwhile, traded around a two-month low.

Elsewhere, copper climbed to a fresh record high and most other industrial metals rose as the Fed delivered the widely expected interest-rate cut and upgraded its growth forecast for the US economy. Gold and silver edged lower in Asia after rising in the previous session. Oil rose and Bitcoin flip-flopped in a tight range around $93,000.

The tech sector also continues to be on traders’ radar after dominating much of the recent market action following Oracle Corp.’s results — which brought worries about valuations and whether heavy spending on AI infrastructure will pay off back into focus.

While the sector has powered the global equities rally this year, overspending fears and lofty valuations have prompted some investors to rotate into other areas. Nvidia Corp. fell 1.6% on Thursday while the Magnificent Seven index of US tech giants dropped 0.6%.

“The effect of Oracle has been greater than the Fed. This already tells us everything as we’ve been witnessing a strong concentration and one theme — AI — leading the market,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “This doesn’t mean that AI is gone or it’s a bubble, but we need to focus on a wider scale.”

Delivering a third consecutive cut, Fed Chair Jerome Powell suggested the Fed had now done enough to help stabilize the threat to employment while leaving rates high enough to continue weighing on price pressures. Traders stuck to bets on two cuts in 2026, even as the Fed’s new projections signaled only one such move.

“The Fed’s ‘hawkish-but-bullish’ cut last night reinforces this: stronger 2026 growth, faster disinflation,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers. “Cuts are continuing, but they’re no longer automatic — and that’s usually a constructive backdrop for equities.”

Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 9:22 a.m. Tokyo time Japan’s Topix rose 1.7% Australia’s S&P/ASX 200 rose 1% Euro Stoxx 50 futures rose 0.9% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1744 The Japanese yen was little changed at 155.64 per dollar The offshore yuan was little changed at 7.0515 per dollar Cryptocurrencies

Bitcoin fell 0.3% to $92,569.93 Ether fell 0.3% to $3,241.07 Bonds

The yield on 10-year Treasuries was little changed at 4.15% Japan’s 10-year yield was unchanged at 1.930% Australia’s 10-year yield was little changed at 4.72% Commodities

West Texas Intermediate crude rose 0.6% to $57.92 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.

–With assistance from Joanna Ossinger and Richard Henderson.

©2025 Bloomberg L.P.