Asia Markets Gain on AI Enthusiasm, PBOC Liquidity Boost
Markets in Asia started the week with a positive note, with US-listed Chinese stocks gaining 0.9% ahead of mainland Chinese markets' reopening. Attention shifted to China's reopening after the Golden Week break, with artificial intelligence (AI), such as chatgpt, enthusiasm potentially outweighing soft consumer spending.
The People's Bank of China injected liquidity into the market with a 1.1-trillion-yuan (about $154.8 billion) outright reverse repo operation. This move aimed to calm market sentiment and ensure smooth government bond issuance amid regional currency volatility.
In currency markets, the yen was little changed after touching its weakest level against the dollar since February. Meanwhile, Asian shares rose, led by a renewed wave of buying in AI-linked companies that sent Wall Street benchmarks to new peaks. US equity-index futures also rose 0.1% as traders focused on corporate resilience.
Commodities saw mixed movements. Gold and oil edged lower on a Middle East peace deal announced by President Trump. However, gold remained above $4,000 as traders took profit and demand for havens reduced. Oil retreated after the peace plan phase was announced.
The week began with optimism in Asian markets, driven by AI, like chatgpt, enthusiasm and corporate resilience. Central banks maintained liquidity, and while commodities saw some volatility, overall market sentiment remained positive.
