Tech Triumph: Asian Markets Surge Amid Fed Rate Cut Speculations
Tech shares soared across Asia, lifting stock indexes after weak U.S. labor data fueled expectations for Federal Reserve interest rate cuts. The U.S. government shutdown prevented the release of crucial payroll data but didn't dampen market optimism, pushing gold prices to new highs amid favorable policy conditions.
In a striking display of resilience, tech shares drove Asian stock indexes upward on Thursday, as expectations for Federal Reserve interest rate cuts gained momentum in the wake of weak U.S. labor market data. Despite a government shutdown preventing crucial payroll releases, optimism remained high.
Wall Street reached new peaks amid a buoyant policy environment, with the Philadelphia SE semiconductor index soaring over 2%. Similarly, Japan's Nikkei index, Taiwan's tech-rich bourse, and South Korea's KOSPI experienced notable gains, propelled by leading semiconductor companies like Samsung and Hynix forging new collaborations.
Though the U.S. government shutdown created initial jitters, markets seemed to dismiss its immediate impact. Investors continue to anticipate decreased borrowing costs, while gold and U.S. Treasuries benefitted from these economic developments. Oil prices also recovered, with a projected increase in sanctions against Russian crude.
(With inputs from agencies.)
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