Stocks Extend Gains on Tech Rally, Brent Climbs: Markets Wrap

(Bloomberg) — Asian shares rose as traders trimmed bets on Federal Reserve interest-rate hikes following cooler-than-expected US inflation data, while the artificial intelligence trade gathered fresh momentum. Oil gained.

MSCI’s Asia Pacific equities gauge climbed 2.3% — set for the biggest advance in a month — with technology shares among the best performers. South Korea’s Kospi jumped 8.2%, regaining the top spot as the world’s best-performing major stock benchmark this year. SK Hynix Inc. shares rose 13% after its American depositary receipts surged 27%. Equity-index futures pointed to gains in Europe and the US, extending the rally from Asia.

Treasuries steadied after a rally sent yields sharply lower Tuesday as traders unwound bets that the Fed would begin raising rates as soon as this month. Sovereign debt gained in Japan and Australia.

A sense of caution, however, lingered as oil climbed for a third day after President Donald Trump threatened further strikes on Iran. Earlier, the US resumed its blockade on the Islamic Republic’s shipping through the Strait of Hormuz. Global benchmark Brent advanced 1% to $85.55 a barrel after surging 11% in the previous two sessions.

Tuesday’s weak US inflation numbers and a strong start to the earnings season have revived the AI trade, boosting technology stocks after a recent bout of volatility. While the data gives the Fed more room to keep rates on hold, escalating tensions in the Middle East continue to cloud the inflation outlook by threatening higher energy prices.

“Softer than expected CPI is a big relief,” said Tiffany Wilding, an economist at Pacific Investment Management Co. While the “report will not eliminate discussion of further tightening entirely, it should effectively remove a July rate hike from consideration,” she said.

What Bloomberg’s Strategists Say…

“Fuel futures are far more elevated than crude peers, suggesting investors are complacent in pricing for this year’s energy supply shocks to rapidly fade, especially given the recent escalation in the US-Iran conflict. That’s a dynamic that will haunt equities, credit and bonds, given investors have been so willing to bet that the impact of wars in the Middle East and Europe would prove transitory.”

— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.

Attention in Asia was once again focused on the chips sector after a volatile session on Tuesday. As sentiment improved, SK Hynix’s US-listed shares soared, pushing the premium of its ADRs over the Seoul-listed stock above 50% just three days after their trading debut.

An Asian benchmark of semiconductor shares added 3.5% on Wednesday.

Volatility “has died down and we’re seeing some repurchasing in the chip sector,” said Kazuhiro Sasaki, head of research at Phillip Securities Japan. “But rather than a full-blown return to tech, we’re seeing sector rotation continue — banks are attractive, especially after strong earnings in the US.”

In other corners of the market, the dollar weakened against most of its Group-of-10 peers. Gold, which typically benefits when rates aren’t increased, gave up some of Tuesday’s gains and edged 0.6% lower to about $4,030 an ounce.

Shares in mainland China were little changed after retail sales unexpectedly grew 1% after a 0.6% drop in May. Industrial production beat forecasts to rise 5.3%. The surveyed urban jobless rate eased to 5% from 5.1% in May. Even so, the country’s GDP growth slowed.

In oil, traders are paying close attention to refined products. Fuel markets in the US and Europe are flashing record tightness as tensions flare up in the Middle East, threatening more pain for consumers already strained with high prices at the pump.

Also, Russia is struggling to deliver all of the crude it’s being forced to ship overseas in the face of escalating Ukrainian drone strikes on its refineries.

“The continuing conflict in the Middle East remains the main constraint on a broader improvement in risk sentiment,” said Rajeev De Mello, global macro portfolio manager at GAMA Asset Management.

Elsewhere, in testimony before US lawmakers, Fed Chairman Kevin Warsh said central bank officials have no tolerance for high inflation, reiterating a vow to tame price growth. Warsh said the June inflation reading was better than expected, but has a long way to go.

“I’m not going to show up here and say mission accomplished,” Warsh said. “What I’d say is there’s plenty of work to do.”

Corporate Highlights:

Payment processing firm Stripe Inc. and private equity firm Advent International offered to buy PayPal Holdings Inc. at a valuation topping $53 billion, Reuters reported, citing people familiar with the matter. Chinese AI pioneer DeepSeek has begun preparations for an initial public offering and may file as soon as this year, setting the stage for what could be a landmark debut for the country’s technology industry. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 1:20 p.m. Tokyo time Nikkei 225 futures (OSE) rose 1.3% Japan’s Topix rose 0.8% Australia’s S&P/ASX 200 rose 0.2% Hong Kong’s Hang Seng rose 1.5% The Shanghai Composite was little changed Euro Stoxx 50 futures fell 0.2% Currencies

The Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.1438 The Japanese yen was little changed at 162.17 per dollar The offshore yuan was little changed at 6.7698 per dollar Cryptocurrencies

Bitcoin rose 0.3% to $64,744.64 Ether was little changed at $1,875.13 Bonds

The yield on 10-year Treasuries was little changed at 4.60% Japan’s 10-year yield declined two basis points to 2.685% Australia’s 10-year yield declined one basis point to 4.90% Commodities

West Texas Intermediate crude rose 0.7% to $79.90 a barrel Spot gold fell 0.5% to $4,033 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Stephen Kirkland, Alice French, Elaine Lai and Bing Hong Lok.

©2026 Bloomberg L.P.