Asian Stocks Advance on Tech Rally, Oil Climbs: Markets Wrap
(Bloomberg) — Stocks in Asia climbed for a second day as chipmakers at the heart of the artificial intelligence boom extended their rebound, offsetting concerns over rising oil prices after renewed escalation in the US-Iran conflict.
MSCI’s Asia Pacific equities gauge rose 1.5%, extending Tuesday’s biggest one-day gain in a month. South Korea’s Kospi, a bellwether for AI investments, jumped 6% as the unwinding of leveraged bets that drove the benchmark nearly 30% below its peak appeared to be nearing its end. Stocks in Japan and Taiwan also advanced.
Elsewhere, crude oil prices climbed, reigniting inflation concerns that pushed Treasury yields to their highest in two months. Brent rose 1.6% to about $92.50 a barrel after US President Donald Trump minimized the prospect of immediate talks with Iran.
Traders are also focused on the yen, which slid past 163 per dollar on Tuesday for the first time since 1986, increasingly testing Japanese authorities’ resolve to intervene.
The rally in technology stocks followed weeks of volatility in the year’s best-performing corner of the market as investors questioned whether massive AI spending will translate into commensurate returns. The focus now shifts to earnings from Alphabet Inc. and Tesla Inc. beginning Wednesday, with lofty expectations leaving little room for disappointment.
“The burden of proof has changed. Investors are no longer asking whether companies can withstand the uncertainty,” said Bret Kenwell, an analyst at eToro. “They want growth and guidance strong enough to justify elevated valuations.”
What Bloomberg Strategists Say…
The extreme fluctuations in the Kospi are captivating global investors as doubts swirl about the sustainability of the AI boom. Today’s action would do little to assuage such concerns even if local stocks rally, as the gyrations have become a feature, rather than a bug.
— Garfield Reynolds, MLIV Asia Team Leader. For full analysis, click here.
Elsewhere, gold rose 1% to almost $4,120 an ounce, while silver climbed about 2% to just below $60.
Treasuries held their losses, which pushed 10- and 30-year yields to the highest levels in about two months on Tuesday. A surge in oil prices has rekindled concerns that inflationary pressures will prompt the Federal Reserve to raise interest rates.
“The market is learning to live with higher oil prices,” wrote Tim Waterer, chief market analyst at KCM Trade in Sydney. “However, the big question is, for how long? Right now, solid earnings are coming to the rescue and are helping divert market focus away from the fact that oil prices are advancing.”
Attention is also on pharmaceutical companies after Trump announced plans to impose 100% tariff on generic drugs imported to the US, beginning in August 2028.
Adding to the optimism in tech, Nvidia Corp. said its latest chip designs are now reaching customers, while Intel Corp. shares rose on plans for further job cuts. After the US close, Super Micro Computer Inc. surged following an update that pointed to a growing order backlog.
Investors also remain focused on company results. US earnings growth should continue to support stocks in the second half of the year, even as near-term bullish positioning and macro headwinds weigh on share prices, according to Goldman Sachs Group Inc. strategists.
Nearly 20% of companies in the S&P 500 by market value are slated to report results this week. Alphabet and Intel will give investors a clearer read on how AI spending is reshaping the tech industry. Intel reports Thursday.
While the recent selloff in AI-related shares has raised questions about the durability of the trade, some strategists see it as a reset rather than a sign of deteriorating fundamentals.
“The long-term AI backdrop appears to be intact,” said Adam Turnquist at LPL Financial. “The recent correction appears more consistent with a healthy reset following a parabolic advance than a fundamental breakdown in the AI investment theme.”
Corporate News:
Global banks are poised to reap a windfall from SoftBank Group Corp.’s unprecedented borrowing binge as they fund the debt-laden conglomerate’s enormous artificial intelligence bet. SpaceX has set the stage for one of the largest share unlocks in capital markets history, with as much as $116 billion worth of stock becoming eligible for sale for the first time next month. Moonshot AI plans to begin talks in August on a final fundraising round ahead of a Hong Kong listing, targeting a valuation of as much as $50 billion as enthusiasm for its latest AI model fuels investor demand. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 10:51 a.m. Tokyo time Japan’s Topix rose 1.3% Australia’s S&P/ASX 200 rose 0.2% Hong Kong’s Hang Seng fell 0.6% The Shanghai Composite rose 0.2% Euro Stoxx 50 futures rose 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1403 The Japanese yen was unchanged at 163.17 per dollar The offshore yuan was little changed at 6.7698 per dollar Cryptocurrencies
Bitcoin was little changed at $66,418.2 Ether rose 0.7% to $1,935.02 Bonds
The yield on 10-year Treasuries was little changed at 4.63% Japan’s 10-year yield advanced 2.5 basis points to 2.745% Australia’s 10-year yield advanced three basis points to 4.98% Commodities
West Texas Intermediate crude rose 1.4% to $85.53 a barrel Spot gold rose 1% to $4,119.67 an ounce This story was produced with the assistance of Bloomberg Automation.
©2026 Bloomberg L.P.
