Asian stocks rise as tech rally, AI optimism, lower oil prices lift sentiment
Asian markets advanced on Tuesday, led by technology stocks, as lower oil prices boosted sentiment and investors anticipated positive outcomes from US-Iran talks. The dollar held firm against the yen on expectations of further interest rate hikes.
AI trade gets lift from optimism around Meta's Muse agent Focus on Trump-Xi meeting later this week Dollar holds ground, keeps pressure on yen Oil prices straddle $100/barrel on talk hopes By Ankur Banerjee SINGAPORE, Sept 22 (Reuters) — Technology stocks powered Asian markets higher on Tuesday as lower oil prices lifted sentiment and investors pinned their hopes on US-Iran talks, while the dollar stood tall on bets that more hikes are needed to rein in inflation.
Attention is also turning to a high-stakes meeting between Donald Trump and Xi Jinping later this week, with investors watching for signs the leaders of the world's two largest economies can prevent a further deterioration in relations. Xi arrives in Washington on Wednesday for the first time in more than a decade amid growing optimism that a trade truce deal between the two nations will be extended and potential cooperation over artificial intelligence. 22 per barrel after dropping over 3% in the previous session, moving below the key $100 level briefly.
President Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the UN General Assembly, helping lift sentiment and pushing bond yields lower. "The drop in oil is a big factor," said Nick Twidale, chief market strategist at ATFX Global. " MSCI's broadest index of Asia-Pacific shares outside Japan rose over 1% in early trading. 3% higher.
Japan markets are closed for a holiday. 3% higher. Much of the AI enthusiasm has been centred on the strong reception to the launch of Meta's Muse AI assistant. 4%.
AI stocks in China and Hong Kong also surged. "The excitement around Meta Muse is adding weight to the idea that millions of people could eventually use persistent AI agents," said Chris Weston, head of research at Pepperstone. " Rate Hikes On The Way Investors are also contending with a fresh wave of rate hikes and hawkish signals from major central banks, reinforcing expectations of further tightening later this year. The shift has underpinned the dollar and piled pressure on the yen.
39 per US dollar, hovering near a three-week low after surrendering early-month gains driven by bets on a faster pace of Bank of Japan rate hikes. The BOJ raised rates last week to a 31-year high but two dissenting votes and lack of explicit hawkish guidance disappointed investors, leaving the yen vulnerable and stoking intervention jitters. "FX intervention remains a blunt tool to prop up currencies, and without a forceful monetary policy response it will be difficult for Japanese authorities to rein in the selloff in the yen," said Matthew Ryan, head of market strategy at Ebury.
The Federal Reserve, by contrast, raised rates last week and warned its fight against inflation was not over, keeping the door open to further tightening. 4, just shy of a seven-week high. 5% a week earlier, CME FedWatch tool showed. com;; Mobile - +65 8121 3925;)