Asia Stocks Surge to Record Highs: What Investors and Business Owners Need to Know
SYDNEY — Asian stock markets reached new highs on Thursday as investors intensified their focus on artificial intelligence (AI) technologies. Meanwhile, gold prices remained above $4,000 per ounce, and the US dollar sustained its recent gains. Oil prices declined following reports of a ceasefire agreement between Israel and Hamas, easing geopolitical tensions.
US President Donald Trump indicated he might visit Egypt this weekend to discuss next steps in the ceasefire deal.
In the equity markets, the renewed enthusiasm for AI technology pushed the S&P 500 and Nasdaq indices to record levels. Investors who capitalized on market dips were rewarded, with JPMorgan analysts highlighting a substantial inflow of multi-billion-dollar investments into AI sectors. These analysts have raised earnings growth projections for the tech industry to 20.9% for the upcoming reporting season, up from 15.9% in June. Approximately 81% of technology stocks, led by Nvidia and Apple, have seen upward revisions to their earnings estimates.
Overall, third-quarter earnings are anticipated to grow by 8%, with revenues expected to increase by 6.3%. Japan’s Nikkei index advanced 1.5%, approaching all-time highs, buoyed by offshore fund purchases totaling 2.5 trillion yen ($16.4 billion) in the week ending October 4. Taiwan’s stock market rose 1.2% to a record high, while the MSCI Asia-Pacific index excluding Japan climbed 0.3%. Chinese blue-chip stocks gained 0.4% following the market’s reopening after a holiday. Consumer spending in China reached 809 billion yuan ($113.52 billion), with 888 million trips recorded.
Beijing has introduced new restrictions on rare earth exports, which could influence ongoing trade negotiations with the United States.
Bond markets remained steady after minutes from the Federal Reserve indicated caution regarding inflation risks despite potential policy easing. Futures markets suggest a 94% probability of a 25 basis point rate cut in November, with a total easing of 44 basis points expected by the end of the year.
The US dollar held close to an eight-month high against the Japanese yen at 152.54, while the euro stabilized around $1.1641. Gold prices remained robust at $4,037 an ounce, supported by anticipated US interest rate cuts and demand for safe-haven assets amid concerns over dollar depreciation and bond market volatility.
Oil prices declined modestly, with Brent crude falling 0.6% to $65.89 per barrel and US crude slipping 0.7% to $62.12, reflecting easing tensions following the Israel-Hamas ceasefire agreement. — Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The surge in AI-driven tech investments and bullish Asian markets signal a significant growth opportunity for Oman’s tech and innovation sectors, urging local businesses to explore AI integration and tech partnerships. Meanwhile, the easing of geopolitical tensions and steady oil prices offer stability for Oman’s energy-dependent economy, but investors should stay alert to potential global supply shifts from rare earth export restrictions. Smart entrepreneurs would do well to diversify their portfolios, focusing on tech innovation while leveraging Oman’s strategic energy position amid evolving global economic dynamics.
