Asia stocks rise, Japan close to record highs.
Most Asian stocks rose on Thursday, with Japanese markets near record highs on sustained optimism over a U.S. trade deal, while technology shares were buoyed by strong earnings from Google owner Alphabet Inc (NASDAQ:GOOGL).
Strong earnings from Nvidia (NASDAQ:NVDA) supplier SK Hynix Inc (KS:000660) also boosted Asian tech, especially as the memory chip giant flagged expectations for robust artificial intelligence-fueled demand.
Regional markets took positive cues from a record-high overnight close on Wall Street, as investors cheered a Japan-U.S. trade deal and held out hope for more such agreements before an August 1 deadline.
In addition to Alphabet’s earnings, tech shares were also encouraged by President Donald Trump flagging more policy support for the AI industry. This helped markets look past steep losses in Tesla (NASDAQ:TSLA), after it clocked an underwhelming second quarter.
Oil prices gain on sharp US inventory decline.
Oil prices inched higher in Asian trading on Thursday, helped by data showing a sharp decline in U.S. crude stockpiles, while investors cautiously awaited progress on trade deals ahead of President Donald Trump’s deadline.
As of 22:18 ET (02:18 GMT), Brent Oil Futures expiring in September rose 0.3% to $68.69 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.3% to $65.45 per barrel.
Both contracts have declined for the last four sessions as Trump’s Aug. 1 tariff deadline nears, raising fears of weaker energy demand.
U.S. crude inventories declined last week – EIA
U.S. crude oil inventories fell sharply last week as refiners ramped up activity and exports remained strong, the Energy Information Administration (EIA) said on Wednesday, offering support to oil prices.
Crude stockpiles declined by 3.17 million barrels in the week to July 19, EIA data showed, far outpacing analysts’ expectations of a 1.6 million-barrel draw.
Euro, yen upbeat on trade progress.
The euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood.
Currencies mostly shrugged off news that U.S. President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, a surprise move that escalates tensions between the administration and the Fed.
It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting U.S. interest rates more aggressively, would be meeting with the Fed chief.
Markets were paying close attention to various tariff negotiations. The European Union and the U.S. were moving towards a trade agreement that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday.
That came on the heels of Washington’s trade deal with Tokyo that lowered tariffs on auto imports and spared the latter from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans.
Global markets took to the latest developments positively, as risk assets rallied and investors sold the U.S. dollar.
The risk-sensitive Australian dollar rose to an eight-month high of $0.6620 on Thursday.
The euro steadied at $1.1773, hovering near a high of $1.1830 it hit earlier this month, which marked its strongest level in more than three years.
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