Asian Stocks Rise Slightly, Yen Nears 160 as AI Rally Continues
Asian stocks edged higher on Wednesday (June 3), following Wall Street, which was buoyed by a renewed rally in artificial intelligence (AI) stocks. The MSCI Asia Pacific Index rose 0.2%, with Japanese and Australian markets rising, while South Korea was closed. This gain came after the S&P 500 closed Tuesday at a new record and recorded its ninth consecutive day of gains, driven by a nearly 6% surge in the chip stock index.
Although risk-on sentiment remains dominant, markets remain cautious as energy prices rebound. Brent rose about 0.8% to US$96.75/barrel amid reports of missile attacks and increased military activity. US Central Command (CENTCOM) stated that US forces intercepted several Iranian ballistic missiles and drones, and conducted a "self-defense" strike on Qeshm Island in response to an Iranian attack attempt in the region.
The US dollar strengthened against all G-10 currencies, while the yen traded near the 160-per-dollar level, sensitive to the risk of Japanese intervention. The market awaited a speech by Bank of Japan Governor Kazuo Ueda for clues on the direction of interest rates, as yen traders assessed the risk of intervention rising in the next two weeks as the yen retested that psychological barrier.
On the commodities and crypto front, Bitcoin weakened to around US$66,700. In the US bond market, Treasury yields weakened from their best level in a month after labor market data earlier this week reinforced bets that the Fed's next move could be a rate hike. The data showed US job openings rose in April to a nearly two-year high, while layoffs fell, indicating a resilient labor market.
In geopolitics, President Donald Trump remained optimistic that a temporary US-Iran deal could be reached soon, denying Iranian media reports that talks had stalled. Mehr reported that Tehran was preparing a "final text" to send to the US. However, energy markets remained focused on the Strait of Hormuz, where commercial flows remain restricted, so oil prices and inflation expectations remain key variables determining the direction of interest rates and risk appetite.
5 Key Points
- Asian stocks edged higher; MSCI Asia Pacific +0.2%, following Wall Street's new record.
- AI and chip stocks continued to lead the rally, fueling global risk-on sentiment.
- Brent rose to US$96.75 amid escalation and reports of US-Iran military action.
- Yen near 160; markets await BOJ Ueda's speech and the risk of intervention increases.
- Dollar strengthened, Treasuries weakened, Bitcoin fell to US$66,700 as markets weighed on the Fed's interest rate outlook. (asd)
Source: Newsmaker.id
