Japan’s Nikkei near all-time high as tech shares boost U.S. stocks

Asian stock markets hit new highs on Thursday as investors continued to bet heavily on AI-related opportunities, while gold remained above $4,000 and the dollar maintained its recent strong gains.

In the U.S. market, a renewed surge in AI-focused technology drove the S&P 500 and Nasdaq to record highs. S&P 500 futures and Nasdaq futures steadied after Wednesday’s gains.

Oil prices eased as geopolitical tensions slightly eased following news that Israel and Hamas had agreed to the first phase of a ceasefire plan to end the two-year conflict. Meanwhile, U.S. President Donald Trump indicated he might travel to Egypt this weekend to discuss the next steps in the deal.

Surge in tech stocks lifts Asian market

In the Asian stock market, a surge in tech stocks lifted Japan’s Nikkei by 1.4 percent, bringing it close to all-time highs, as data showed offshore investors bought a net $16.40 billion of Japanese shares in the week ending October 4.

The Taiwan Weighted Index gained 0.93 percent after hitting a new high, while MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.43 percent.

China’s CSI 300 Index rose 1.60 percent as markets reopened following a week-long holiday. During the break, Beijing reported consumer spending of $113.5 billion and 888 million trips. It also announced new restrictions on the export of rare earth minerals and related equipment, a long-standing point of contention in trade negotiations with the United States.

In the European stock market, EUROSTOXX 50 futures eased 0.18 percent, FTSE futures fell 0.38 percent and DAX futures dipped 0.09 percent.

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U.S. dollar remains near eight-month highs against yen

In currencies, the U.S. dollar remained near eight-month highs against the yen at 152.54, having gained 3.5 percent this week amid concerns over increased Japanese government borrowing. Meanwhile, the euro held steady at $1.1641 after briefly hitting a six-week low of $1.1598 overnight, following data showing German industrial output fell by the largest monthly margin in over three years in August.

Investors are now watching to see if French President Emmanuel Macron can appoint a new prime minister capable of negotiating a viable budget deal.

In commodities, gold remained steady at $4,037 an ounce, marking a 3.9 percent gain for the week so far. The metal has been supported by expectations of a series of U.S. rate cuts, strong investor demand for non-debasable assets, and central bank purchases for reserves. Futures continue to imply a 94 percent chance of another quarter-point cut in November, and have 44 basis points of easing priced in by year-end.

Meanwhile, oil prices edged lower as news of a ceasefire between Israel and Hamas eased concerns over potential supply disruptions.
Brent crude fell 0.6 percent to $65.89 a barrel, while U.S. West Texas Intermediate (WTI) crude declined 0.7 percent to $62.12 per barrel.