Wall Street Rally Fails to Spread to Asia
Asian stock markets weakened during Tuesday's trading (Aug 4) as investors once again questioned the sustainability of the artificial intelligence investment trend. The MSCI Asia Pacific Index fell 0.6%, while South Korea's Kospi slumped 1.9% due to declines in SK Hynix and Samsung Electronics shares.
This movement contrasted with Wall Street, which had rallied sharply in the previous session. The S&P 500 rose 1.5%, nearing record highs, driven by technology stocks. Palantir surged in after-hours trading after raising its revenue and profit forecasts, while Amazon faced pressure from Jeff Bezos's planned share sales.
The yen held steady around 157.40 per US dollar following a sharp earlier gain. Markets remain wary of potential further intervention, following coordinated moves by the US and Japan last week to support the currency.
Brent crude prices edged up to around US$84.10 per barrel after a steep prior drop. Investors are awaiting clarity on US-Iran diplomacy and the status of the Strait of Hormuz. The yield on the 10-year US Treasury held around 4.68%, while gold rose slightly toward US$4,060 per troy ounce.
Investor focus has now shifted to corporate earnings reports and US labor data. About 86% of S&P 500 companies that have reported results posted earnings per share above estimates, yet the market still requires proof that massive AI spending is genuinely translating into profit growth.
Newsmaker Analysis: Asian markets remain vulnerable to pressure from high AI stock valuations and profit-taking. However, strong corporate earnings, falling yields, and easing oil prices could limit the downside. Future direction will be heavily influenced by tech sector reports, US labor data, and developments in Washington-Tehran relations. (gn)
Source: Newsmaker.id
