Asian Stocks Surge on Tech Boost Amid Iran and Rate Worries
Asian stocks experienced an uptick on Thursday, buoyed by the performance of technology giants on US Market. Meanwhile, ongoing tensions between the US and Iran provided support for oil prices, while gold remained bolstered by safe-haven flows. In currencies, the dollar strengthened following the release of minutes from the Federal Reserve’s latest meeting, which indicated that policymakers were not in a hurry to reduce rates. Trading was thinned in Asia with markets in Hong Kong, China, and Taiwan closed for the Lunar New Year holiday. However, MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.5 percent, while Japan’s Nikkei increased by 0.85 percent, driven by technology shares. South Korea’s Kospi surged approximately 3 percent, reaching an unprecedented peak.
That came after an increase in shares of major technology companies on US Market, following the announcement from Nvidia on Tuesday that it had secured a multiyear agreement to supply Meta Platforms with millions of its current and future artificial intelligence chips. “We needed some good news. I think there has been a general feeling of malaise in the tech sector,” said Tony Sycamore referring to the steep selloff earlier this month. Nvidia has been at the forefront of the rally we observed leading up to the end of 2025, and it seems to be stepping in to provide some much-needed positive developments… this could pave the way for tech stocks to perform better as we approach Nvidia’s earnings report next week. Nasdaq futures increased by 0.05 percent, while S&P 500 futures rose by 0.03 percent. EUROSTOXX 50 futures experienced a decline of 0.15 per cent. Geopolitics remained a significant factor in the markets. Oil prices maintained their gains following a significant surge in the previous session, as investors factored in potential supply disruptions amid concerns regarding a conflict between the US and Iran. Brent crude futures experienced a slight decline, trading at $70.31 a barrel after a notable increase of 4.35 percent in the prior session.
Meanwhile, US crude was last recorded at $65.10, maintaining the majority of Wednesday’s 4.6 percent gain. There has been a significant accumulation of military resources in the last 24 hours … however, I believe this is merely a component of the ongoing diplomatic maneuvering, and I do not anticipate an immediate attack. “I think this is just designed to put more pressure on Iran to come back with more reasonable objectives from these talks,” said Sycamore. Gold maintained its appeal, finding bids and stabilizing at $4,963.99 an ounce. The dollar maintained its gains on Thursday following stronger-than-anticipated US economic data. Additionally, minutes from the Fed’s January policy meeting indicated that several policymakers were receptive to the idea of rate hikes should inflation continue to be high. Against the dollar, sterling declined to nearly a one-month low of $1.3488, while the yen hovered around the 155 per dollar mark, last recorded at 154.80.” From our perspective, the minutes support our view that rate cuts are off the table for the foreseeable future,” said Charlie Ripley.
While certain market participants are reflecting on inflation as a past concern, the Fed continues to issue a cautionary note that ‘objects in the mirror are closer than they appear’. Policymakers specifically noted, “disinflation could be on a slower path.” In other developments, the euro faced challenges, trading below $1.18 and last recorded at $1.1791, influenced by reports that European Central Bank President Christine Lagarde intends to resign from her position ahead of schedule. The New Zealand dollar was up 0.11 per cent at $0.5972, having tumbled 1.4 per cent in the previous session after the country’s central bank tempered market expectations for a hawkish pivot at its policy meeting.
