Hong Kong: Tech stocks on Friday brought Nikkei of Tokyo to a high level as most Asian markets were advanced amid opinionism about US interest rate cuts.
Investors maintained a positive spirit in the weekend despite the ongoing concerns about the partial US government’s shutdown.
This year the global market rallies have been mainly run by large -scale corporate investment in artificial intelligence technologies.
Traders continued to chase AI-related opportunities, pushed to unprecedented levels of some major company to unprecedented levels.
The US chip giant Nvidia recently acquired $ 4 trillion market capitalization amid this technology mania.
South Korean semiconductor leaders Samsung and SK Hinix gave additional speed this week by announcing initial deals with OpenaiI this week.
Agreements include Openai’s ambitious Stargate AI project supply for the project.
Japanese group Hitachi further enhanced the regional spirit by revealing its strategic partnership with OpenaiI.
Hitachi’s stock increased by more than nine percent after the announcement of AI cooperation.
Other Japanese technology companies received adequate benefits during Friday trading session.
Renesas Electronics climbed by about nine percent while Sony rose 2.8 percent.
Chip Testing Equipment Maker Adventest Tech Investment increased by more than three percent with veteran softbank.
The Nikkei index of Tokyo recorded a sharp benefit with advances in Sydney, Wellington, Taipei, Jakarta and Manila markets.
Hong Kong experienced a slight fall after holding more than four percent rally in the last three business days.
Singapore markets also decreased while Shanghai remained closed for a national holiday.
Three main indices of Wall Street reached a record high level on Thursday, expanding the global rally.
Recently, US labor market data has indicated economic recession, reinforcing the expectations for cuts in Federal Reserve.
The central bank has already reduced the cost of borrowing and indicated to further monetary.
The spirit of the positive market has affected Washington’s political deadlock to a great extent, which has shut down a partial government.
Some US government services have suspended operations, potentially delaying major employment data release.
Analysts believe that the shutdown will not prevent Fed from implementing another expected rate cut this month.
Pepperstone analyst Chris Weston said the government’s shutdowns can temporarily reduce US GDP by $ 15-20 billion.
Weston suggested that economic effects should be negligible as the possibility of lost activity will be recovered later.
He acknowledged potential risks if there are threats about Furls, a permanent government activist of former President Trump.
The analyst believed that the operations of the US government would resume before the significant economic data release.
A Senate vote is expected on the proposal of a House to fund government operations through 21 November.
Japanese beer manufacturer Asahi faced production disruption in several factories after the cyber attack.
Forcing the temporary production stop, the company’s ordering and delivery system were compromised.
Amid cyber security incidents, the officials of Asahi could not provide a time -line to restore general operations. – AFP
