Risk sentiment is stabilising after Monday’s sharp AI-led selloff. The MSCI Asia Pacific Index climbed 2.5%, led by South Korea’s Kospi, which surged 8.5%. The recovery followed gains on Wall Street, where the Nasdaq 100 and chip stocks bounced, while US futures point to further upside. With signs of de-escalation in the Middle East, after Iran and Israel pledged to ease strikes in order to continue peace talks, Brent crude dropped 1.1% to $93.20 per barrel.
OpenAI is said to have filed confidentially for an IPO in the US, a week after Anthropic.
Bank of Japan officials are considering a 25 bps interest rate hike at next week’s meeting, and they see the possibility of a further rate hike later this year amid rising inflation concerns. Meanwhile, USD/JPY is still hovering above 160.
Today is light on macro data. The focus this week will be on tomorrow’s US CPI release. A softer core reading could help ease fears that the Fed may need to hike again this year, while a hotter number would quickly revive pressure on equities, support the dollar, and push yields higher.
• Bitcoin fell 0.2% to $63,374.48
• Ether was little changed at $1,690.47
• Spot gold rose 0.3% to $4,344.86/oz
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