Asian equities edged higher, led by tech, after Alibaba surged on a pledge to ramp up AI investment. Semiconductor stocks rallied on a Morgan Stanley upgrade and Huawei’s plan to challenge Nvidia, lifting China’s CSI 300 and the Hang Seng despite Super Typhoon Ragasa disrupting Hong Kong. MSCI’s Asia Pacific Index rose 0.1%. S&P 500 futures were flat, European contracts slipped 0.3%, Treasuries were steady, and gold held near record highs. Oil gained as Trump hardened rhetoric on Russia and Ukraine escalated strikes on energy assets.
The Fed remained divided, with Powell warning of a fragile labour market while others flagged upside inflation risks. Governor Bowman backed faster cuts, while Bostic and Goolsbee leaned hawkish. Markets continue to price a September cut but remain wary of tariffs and policy uncertainty.
Elsewhere, Trump urged NATO to intercept Russian aircraft, lifting Asian defence stocks, while New Zealand named Anna Breman its first female central bank governor. Corporate updates included Micron’s upbeat AI-driven forecast and Zijin Gold delaying its $3.2bn Hong Kong listing due to Ragasa.
On the data front, we have US mortgage applications at noon and new home sales later in the afternoon.
