---
title: "Asian stocks rally on AI optimism, dollar steady: markets wrap"
description: "Asian equities rose on Wednesday after a surge in chipmakers drove US stocks to yet another record-breaking session on Wall Street."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-06-19-asian-stocks-rally-on-ai-optimism-dollar-steady-markets-wrap/"
published: "2024-06-19T05:33:40"
lang: "en-ZA"
word_count: 426
---

# Asian stocks rally on AI optimism, dollar steady: markets wrap

> Asian equities rose on Wednesday after a surge in chipmakers drove US stocks to yet another record-breaking session on Wall Street.

By Bloomberg · Published 19 June 2024, 07:33 SAST

## Content

The MSCI Asia Pacific index advanced about 1%, with chip and artificial intelligence-related shares leading the advance. Hong Kong stocks rebounded, while mainland Chinese shares slipped as traders digested speeches at the Lujiazui Forum, where securities regulator chief Wu Qing and PBOC Governor Pan Gongsheng are among the speakers.

The overall risk-on mood comes after US traders pushed the S&P 500 closer to the historic 5,500 mark, betting the potential for Federal Reserve rate cuts will keep fuelling the tech industry. Nvidia Corp. became the world’s most-valuable company — topping Microsoft Corp. — to extend this year’s record-breaking surge.

A Bloomberg gauge of the dollar held on to Tuesday’s declines. There’s [no](https://www.sifma.org/resources/general/holiday-schedule/) trading of Treasuries globally on Wednesday due to a holiday in the US.

“Tech stock rallies in Taiwan, Korea, and Japan are expected to continue, it’s not just about Nvidia,” said Aisa Ogoshi, a portfolio Manager at JPMorgan Asset Management, said in a Bloomberg TV interview. Apple Inc.’s plans on AI will also benefit its suppliers, she added.

China’s 10-year bond yield fluctuated after PBOC Governor Pan said the central bank is studying how to implement government bond trading together with the finance ministry.

Its 10-year government bond futures closed at a record high on Tuesday. The relentless [bull run](https://www.bloomberg.com/news/articles/2024-06-18/china-s-10-year-bond-futures-see-record-close-amid-bull-run-lxk36470) in the debt market has been a concern for Chinese authorities, with the PBOC issuing several [warnings](https://www.bloomberg.com/news/articles/2024-06-17/china-steps-up-warnings-on-relentless-bond-buying-frenzy) via state media on the risk of a market reversal.

In other Asian news, Japan’s [exports](https://www.bloomberg.com/news/articles/2024-06-18/japan-s-exports-grow-most-since-2022-as-weak-yen-provides-boost) grew at the fastest clip since late 2022 as the weak yen boosted their value. The yen was little changed after a four-session drop.

Overnight, Wall Street waded through mixed economic data that showed US industrial production increased, helped by a broad-based pickup in factory output. Separately, retail sales barely rose and prior months were revised lower. A chorus of [Fed officials](https://www.bloomberg.com/news/articles/2024-06-18/fed-officials-urge-patience-on-rate-cuts-offer-hints-on-timing) emphasised the need for more evidence of cooling inflation before lowering rates.

“Investors should lean toward the glass-half-full view, but recognise macroeconomic conditions, as well as the nuances across corporate profits, consumers, and incoming economic data may evolve in ways not fully discounted in asset prices at the moment,” said Anthony Saglimbene at Ameriprise.

In corporate news, Norinchukin Bank, Japan’s biggest agricultural bank, said it will diversify its investment portfolio as it braces for [massive losses](https://www.bloomberg.com/news/articles/2024-06-19/norinchukin-eyes-assets-including-clos-stocks-after-bond-loss) on the sale of roughly 10 trillion yen ($63-billion) in US and European sovereign bonds.

In commodities, oil steadied after closing at a seven-week high as a sustained risk-on mood in wider markets outweighed signs of further stockpile growth. Gold was little changed.