Stocks Rise, Oil Fluctuates on Mideast Peace Deal: Markets Wrap
(Bloomberg) — The global stock rally extended its run as renewed buying in companies tied to artificial intelligence lifted equities in Asia.
MSCI’s gauge for global stocks rose for the ninth time in 10 sessions, while Asian shares climbed 0.4%, led by tech firms such as SoftBank Group Corp. HSBC Holdings Plc slumped on plans to take one of its banking units private, while shares in mainland China jumped 1.6% as they reopened after the Golden Week break. Equity-index futures for the US were flat, while contracts indicated a softer open for Europe.
Gold retreated from a record high, but still traded above $4,000, as traders took some profit after a scorching rally and on reduced demand for haven assets. Copper neared a record. Oil fluctuated as President Donald Trump said Israel and Hamas have both signed off on the first phase of a peace plan.
Gains in Asian stocks followed US benchmarks closing at yet another record as traders looked past worries of a potential bubble in high-profile tech names and instead focused on corporate resilience and the restart of Federal Reserve interest-rate cuts. The optimism that’s powered equities since their April slump now faces a key test as earnings season begins.
“Given how lopsided the expectations have become, given how lofty the valuations have become, I think investors are laser focused on earnings,” Aidan Yao, a strategist at Amundi Investment Institute, said in a Bloomberg TV interview. “They are trying to see if earnings are really catching up into the valuations.”
In other corners of the market, the yen edged up after touching its weakest level against the dollar since February, raising speculation about official intervention. A gauge of the dollar headed for its first decline in four sessions following a rally that propelled the currency to its highest in almost two months.
Attention in Asia was firmly on China as trading resumed after the Golden Week break. Investors are weighing whether renewed enthusiasm for artificial intelligence can outweigh signs of soft consumer spending.
Holiday data showed households remained cautious. Spending was restrained, with cheaper road trips replacing flights and box office sales missing expectations.
The weakness in consumption comes alongside an artificial intelligence frenzy that sent global tech stocks to fresh highs while China was shut, fueled by firms touting OpenAI ties.
“There’s been a bunch of news around OpenAI that’s positive on AI sentiment that happened during the China holiday that isn’t reflected in share prices,” said Xin-Yao Ng, a fund manager at Aberdeen Investments. “There’ll be some catching up to do.”
In geopolitical news, Trump said Israel and Hamas have agreed to terms for the release of all hostages held by the Palestinian militant group in Gaza, a major breakthrough in the US- and Qatari-brokered negotiations to end their two-year war.
If the agreement holds, it would mark a major step toward ending the conflict that erupted after Hamas attacked Israel on Oct. 7, 2023 and threw the Middle East region into crisis.
In European news, French President Emmanuel Macron said he’ll name a new prime minister by Friday evening, having for the time being avoided the need to call a snap election that would have deepened the political chaos in France.
Separately, the US approved several billion dollars worth of Nvidia Corp. chip exports to the United Arab Emirates, an initial step in implementing a controversial deal that could serve as a blueprint for American AI statecraft.
Meanwhile, China will tighten curbs on rare earths to include items manufactured abroad, expanding restrictions that have been a source of tension between Beijing and Washington.
Corporate News:
HSBC Holdings Plc plans to take Hang Seng Bank Ltd. private in a deal that values the lender at $37 billion, ramping up its exposure to Hong Kong as the financial hub attempts to bounce back from years of economic turbulence. BlackRock Inc. has requested to pull some money it invested in a Jefferies Financial Group Inc. fund with large exposure to the trade debt of bankrupt auto-parts supplier First Brands Group Inc. SoftBank Group Corp.’s stock surged as much as 13% to a fresh intraday high as its plan to buy ABB Ltd.’s robotics arm boosted expectations for profit growth from artificial intelligence. Graphcore, the British chip designer owned by SoftBank Group Corp., is planning to announce a £1 billion ($1.3 billion) investment package in India that includes a new research hub. Alibaba Group Holding Ltd. said it has established an in-house team for robotics, joining major global firms in a race to build AI-powered physical products.
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 6:52 a.m. London time Nasdaq 100 futures were little changed The MSCI Asia Pacific Index rose 0.4% Japan’s Topix rose 0.4% Hong Kong’s Hang Seng was little changed The Shanghai Composite rose 1.1% Euro Stoxx 50 futures were little changed Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.1% to $1.1641 The Japanese yen was little changed at 152.56 per dollar The offshore yuan rose 0.3% to 7.1316 per dollar The British pound was little changed at $1.3409 Cryptocurrencies
Bitcoin fell 0.7% to $122,005.42 Ether fell 1.2% to $4,448.81 Bonds
The yield on 10-year Treasuries was little changed at 4.12% Japan’s 10-year yield was unchanged at 1.690% Australia’s 10-year yield declined one basis point to 4.35% Commodities
Spot gold fell 0.1% to $4,037.65 an ounce West Texas Intermediate crude was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi, Sangmi Cha and Joanne Wong.
©2025 Bloomberg L.P.
