Global Stocks Surge to Records on AI Optimism and US-China Trade Progress
Stock markets around the globe have seen a surge in optimism, with Asian and US indices reaching record highs. This rally is driven by positive sentiment towards artificial intelligence and progress in US-China trade talks.
In Japan, stocks gained 1% with Hitachi Ltd. and Renesas Electronics Ltd. among the leading performers. Across the Pacific, a gauge of Chinese tech shares in the US rose 1.1% to a three-year high. The optimism was further boosted by US tech stocks, which jumped to all-time highs following OpenAI's share sale.
Asian stocks started the week on a positive note, poised for their fourth gain in five weeks. This comes as US President Donald Trump plans to discuss job cuts with White House Budget Director Russell Vought. Meanwhile, Bank of Japan Governor Kazuo Ueda is set to speak in Osaka, potentially providing further insights into the region's economic outlook. Despite the lack of official announcements, optimism around artificial intelligence continues to propel global equities to fresh records. Alibaba Group Holding Ltd. surged 3.6% in US trading, reaching its highest level in more than four years.
Money markets are almost fully pricing a quarter-point Fed cut at the end of the month, reflecting a cautious approach to monetary policy. Despite the uncertainty around specific announcements, the global stock market rally shows strong investor confidence in the current economic trajectory.
