Asia stocks rise on tech gains.
Asian stocks advanced on Thursday on strength in technology and healthcare, with South Korean shares hitting record highs as local chipmakers rallied on optimism over more artificial intelligence development.
Regional trading volumes remained muted on account of a week-long holiday in mainland Chinese markets. Indian markets were also closed for a holiday.
Asian markets tracked some overnight strength in Wall Street, as investors largely looked past a U.S. government shutdown. The S&P 500 ended at a record high on support from healthcare and tech.
S&P 500 Futures rose 0.1% in Asian trade.
S.Korea’s KOSPI at record high as OpenAI deal sparks chip rally
South Korea’s KOSPI was by far the best performer in Asian trade, rallying 3% to a record high of 3,565.71 points.
Oil rises on Russia sanctions fears.
Oil prices rose on Thursday following losses in the previous three sessions as the potential for tighter sanctions on Russian crude lent some support, though concerns about oversupply in the market capped gains.
Brent crude futures gained 20 cents, or 0.31%, to $65.55 a barrel at 0631 GMT. U.S. West Texas Intermediate crude climbed by 20 cents, or 0.32%, to $61.98 a barrel.
Some analysts attributed the increases to a technical rebound, after Brent and WTI both lost about 1% in the prior session, with Brent closing at its lowest since June 5 and for WTI since May 30.
“Buying interest emerged as WTI neared its $60 support level, while heightened geopolitical risks and speculation about tighter sanctions on Russian crude also lent support,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
The Group of Seven nations’ finance ministers said on Wednesday they will take steps to increase pressure on Russia by targeting those who are continuing to increase their purchases of Russian oil and those that are facilitating circumvention.
Dollar steadies.
The U.S. dollar battled to overturn a four-day losing streak on Thursday after the U.S. Supreme Court said it would hear arguments in January over President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook, leaving her in the post for now. Market concern about the Fed’s independence now “moves to the backburner for the next few months,” said Tony Sycamore, market analyst at IG in Sydney.
Earlier strength for the U.S. dollar petered out, with a gauge which measures the greenback’s strength against a basket of six currencies reversing initial gains of 0.1%, and was last trading flat at 97.74.
After four straight days of losses for the world’s reserve currency, traders are weighing how long the U.S. government shutdown will last, its effect on economic data releases, and how that will play into the Fed’s decision making. “We’re in a bit of a void,” Sycamore added. “We’re effectively done now, in terms of market-moving data, until October 13.”
The U.S. government shutdown has put the brakes on the flow of federal economic data at a moment of uncertainty and division among policymakers. The Trump administration on Wednesday froze $26 billion for Democratic-leaning states, following through on a threat to use the shutdown to target Democratic priorities.
The betting website Polymarket indicates the highest likelihood that the standoff will last between one or two weeks, though there is currently a 34% probability of a longer shutdown, with just over $1.2 million wagered. U.S. private payrolls unexpectedly dropped by 32,000 last month after a downwardly revised 3,000 decline in August, according to data released by ADP on Wednesday.
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