Stocks Rise With Futures, Bonds Drop on Inflation: Markets Wrap
(Bloomberg) — Stocks swung to a gain as dip buyers stepped in following early weakness in chipmakers, betting a record-breaking rally has more room to run. Government bonds from Australia to Japan followed Treasuries lower after faster-than-expected US inflation data.
MSCI’s Asia Pacific index erased earlier losses to rise 0.4% as South Korean stocks reversed initial declines to gain 1.7%, powered by chip giants SK Hynix Inc. and Samsung Electronics Co. Equity-index futures for the US and Europe extended gains after the White House said Nvidia Corp. Chief Executive Officer Jensen Huang would join President Donald Trump’s trip to China. Nvidia’s shares rose more than 3% on an alternate trading platform on the news.
Bonds were also in focus after the faster-than-estimated rise in core US consumer prices spurred bets the Federal Reserve will raise interest rates next year. Japan’s 20-year bond yield climbed above its January peak to touch the highest level since 1997 as elevated energy prices add to inflation pressure. The rate-sensitive two-year Treasury yield held just under 4%, while its 30-year peer was within two basis points of this year’s high.
Elsewhere, the pound held steady as a political crisis unfolds in the UK, while the Indian rupee edged lower even after the government more than doubled tariffs on gold and silver.
While elevated oil levels and rising inflation risks are testing the rebound in equities from their war-driven lows, investors continue to back semiconductor companies on expectations the AI rollout will drive corporate profits. Optimism that tensions in the Middle East will ease is also helping temper concerns about higher prices and their impact on the global economy.
“Tech FOMO is proving to be more superior than the underlying Iran situation in investors’ minds now,” said Francis Tan, Asia chief strategist at Indosuez Wealth. “The Iran situation is a constant underlying worry, which could show its bite when US equity valuations move even higher.”
What Bloomberg Strategists Say…
“FX traders are reaching for their playbooks, which highlight strategies for shorting the pound that coincide with periods of political turmoil in the UK. Selloffs in Asia are of course fueled by reduced liquidity, but it is also about the overnight bearish news flow from London.”
— Mark Cranfield, MLIV. For full analysis, click here.
Elsewhere, Brent crude oil dropped 1.4% to about $106.30 a barrel. Gold fell 0.3% to about $4,700 an ounce, while silver traded around $86.40.
High-flying chip stocks had struggled through one of their most challenging sessions of the year on Tuesday in a dramatic reversal for some of the market’s best performers. The Philadelphia Semiconductor Index had slumped 3%, its biggest drop in two weeks.
Asian investors stepped in after weakness at the start of the trading day. MSCI’s Asia Pacific tech index edged up 0.2% with SK Hynix surging 7.6% to a record and Samsung rising 4.3%.
“The uncomfortable question hanging over the market is this: can corporate America continue to deliver strong profitability if elevated oil prices are here to stay,” Tim Waterer, chief market analyst at KCM Trade, wrote in a note.
On the geopolitical front, President Trump said he would prioritize trade discussions during his summit with Chinese counterpart Xi Jinping this week, and downplayed the amount of attention they would devote to the Iran war.
Traders have ramped up wagers the yuan will strengthen in coming days in a bet that the meeting will support a trade truce between the nations.
Earlier, US inflation quickened in April on rising gasoline and grocery costs, exceeding wage growth in a double-whammy for already strained consumers. CPI rose 3.8% from a year earlier, the most since 2023. The core gauge, which excludes food and energy, increased 2.8%.
“Inflation is roaring back — largely driven by stubbornly high oil prices — which will dominate the inflation story for the rest of the year as the conflict continues to unfold in the Middle East,” said Skyler Weinand at Regan Capital.
Corporate News:
Anthropic PBC is in early talks with investors to raise at least $30 billion in fresh financing, according to people familiar with the matter, setting the stage for what could be its largest funding round yet. Siemens AG will repurchase as much as €6 billion ($7 billion) of shares after orders across the company’s key divisions climbed against a demanding environment. Samsung Electronics and its labor union failed to reach a last-minute wage agreement, according to the Yonhap news service, heightening the risk of a strike that could disrupt operations. Cerebras Systems Inc. is guiding prospective investors that it expects to price its initial public offering above the top of its marketed range. Chinese investors are heading into the earnings season demanding proof that billions in AI spending by tech giants is paying off. That spotlight will fall on Alibaba Group Holding Ltd. and Tencent Holdings Ltd. when they report results on Wednesday. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 1:52 p.m. Tokyo time Japan’s Topix rose 1.2% Australia’s S&P/ASX 200 fell 0.5% Hong Kong’s Hang Seng rose 0.3% The Shanghai Composite was little changed Euro Stoxx 50 futures rose 0.8% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1734 The Japanese yen was little changed at 157.72 per dollar The offshore yuan was little changed at 6.7915 per dollar Cryptocurrencies
Bitcoin rose 0.6% to $81,192.57 Ether rose 0.9% to $2,305.46 Bonds
The yield on 10-year Treasuries was little changed at 4.46% Japan’s 10-year yield advanced 3.5 basis points to 2.580% Australia’s 10-year yield advanced three basis points to 5.06% Commodities
West Texas Intermediate crude fell 1.4% to $100.71 a barrel Spot gold fell 0.3% to $4,700.16 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Momoka Yokoyama.
©2026 Bloomberg L.P.
