Asian Stocks Surge on AI Optimism Amidst International Tensions
Equity Markets:
* Tencent Holdings Ltd. soars 6.6% in Hong Kong, driven by DeepSeek's AI breakthrough.
* Asian shares climb to their highest level since December, buoyed by tech companies.
Technology Sector:
* DeepSeek's AI innovation sparks a $1.3 trillion rally in China's tech stocks.
* Potential meeting between President Xi and Jack Ma could further boost the sector.
International Tensions:
* US-EU tensions over tariffs and the Ukraine conflict weigh on investor sentiment.
* German and French bond futures decline amid rising tensions.
Economic Indicators:
* Goldman Sachs raises targets for Chinese equity benchmarks.
* Michael Burry rolls back some investments in Chinese tech stocks.
* Japan's economy expands for a third consecutive quarter.
* Inflation readings in Japan, UK, and Canada expected this week.
Commodities:
* Oil falls for a fourth day on prospects of increased supply from Iraq and Russia.
* Gold edges higher.
Upcoming Key Events:
* Presidents Day holiday in the US (closed bond and stock markets)
* Australia rate decision
* UK jobless claims and unemployment data
* Canada CPI
* New Zealand and Indonesia rate decisions
* Eurozone consumer confidence
* G-20 foreign ministers meeting in South Africa
* Reserve Bank of Australia Governor's testimony
* Japan CPI
* Global manufacturing and services PMI data
Market Movements:
Stocks:
* S&P 500 futures gain marginally
* Japan's Topix index rises slightly
* Australian S&P/ASX 200 index declines
* Hong Kong's Hang Seng index dips
* Shanghai Composite index edges lower
Currencies:
* Dollar remains steady
* Euro fluctuates slightly
* Yen appreciates against the dollar
Cryptocurrencies:
* Bitcoin and Ether decline modestly
Bonds:
* Australian 10-year yield rises
Commodities:
* West Texas Intermediate crude falls
* Spot gold gains