Stocks rose to a record as investors doubled down on the artificial intelligence trade that’s powered equities to all-time highs. Oil climbed as a US-Iran ceasefire deal remained elusive. The MSCI All Country World Index, the broadest measure of global equities, advanced 0.2%, with Asian shares climbing 1% to an all-time high. Gauges in South Korea and Taiwan — bellwethers for AI investments — and the Nikkei in Japan all hit records.
SoftBank Group Corp., whose investments include chip designer Arm Holdings Plc and ChatGPT maker OpenAI, surged as much as 11%, putting it on track to become Japan’s most valuable company. LG Electronics Inc. jumped 30%. Sentiment was further buoyed by a 0.5% gain in Nasdaq 100 Index futures after Wall Street benchmarks closed at records on Friday. Weighing on the mood, however, was a rally in oil prices. Brent climbed over $93 a barrel as Middle East tensions remained elevated and efforts to reopen the Strait of Hormuz showed little progress. That sent Treasuries lower across the curve, while European shares were set for a weaker start. The dollar, the haven of choice since the US-Israel war on Iran started, strengthened for the first time in three sessions. Relentless enthusiasm for the AI trade continued to propel global equities toward record highs, helping lift South Korea’s market to the top of global performance rankings this year. Still, oil’s rebound on Monday after its steepest monthly drop in more than six years is reviving concerns about energy-driven inflation and could complicate the recent recovery in global bond markets. Offsetting war worries has been unbounded enthusiasm for sectors touched by the AI trade. The Philadelphia Stock Exchange Semiconductor Index, or SOX, is on pace for its best quarter ever after soaring 69% in the past two months. Chips are the best-performing sector in the S&P 500 this year by a wide margin. Micron Technology Inc.’s shares have more than tripled this year. In Asia, SK Hynix Inc. has soared 260%, and Samsung Electronics Co. is up over 180%. If anything threatens the upward arc, it’s the velocity of the advance itself, according to Laurent Lamagnere, deputy CEO at Alphavalue in Paris. In other corners of the market, the yield on the benchmark 10-year Treasury climbed three basis points to 4.47%. Yields on government bonds of similar maturity in Australia and Japan also climbed. Futures of similar-tenor debt in France and Germany declined. Gold slid 0.6% to trade around $4,510 an ounce. During the weekend, an Iranian ballistic missile strike on a Kuwaiti air base caused minor injuries to several Americans, while Israel stepped up its offensive against the Tehran-backed Hezbollah in Lebanon. The US also conducted “self-defense strikes” on Iranian radar and command and control sites for drones in Goruk, Iran and Qeshm Island this weekend. Meanwhile, the US and Iran exchanged messages seeking amendments to a draft agreement that would extend the ceasefire and reopen the Strait of Hormuz, though it remained unclear whether talks were making much progress. On Friday, US President Donald Trump posted on social media he was ready to make a “final determination” on a preliminary agreement to extend the ceasefire. Hours later, he left the Situation Room meeting without any decision being made, the New York Times reported. Amendments to the deal continue to be proposed by both sides, though both the US and Iran might ultimately reject the changes and the deal would collapse, the semi-official Tasnim news agency reported Sunday.
Nikkei +0.71% Hang Seng +0.88% CSI -0.55% KOSPI +4.56% Shanghai -0.12% Shenzen -0.05%
Eur$ 1.1650 CNH 6.7669 CNY 6.7683 JPY 159.47 GBP 1.3456 CHF 0.7831 RUB 71.2863 TRY 45.9146 WTI$ 89.52 +2.45% Gold 4,510 -0.64% BTC 73,341 -0.40% ETH 1,996 -0.42%
S&P +0.29% Nasdaq +0.59% EuroStoxx -0.18% FTSE -0.39% Dax -0.09% SMI -0.35%
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