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Asian Markets Rise on Tech Rally as Oil and Gold Hold Firm Amid Fed and Geopolitical Tensions

Asian Markets Rise on Tech Rally as Oil and Gold Hold Firm Amid Fed and Geopolitical Tensions. Source: Photo by Kindel Media

Asian stock markets advanced on Thursday, buoyed by a renewed rally in U.S. technology shares, while geopolitical tensions between the United States and Iran supported oil prices and sustained safe-haven demand for gold. Investors also reacted to the latest Federal Reserve meeting minutes, which signaled policymakers are not in a hurry to cut interest rates.

Trading activity in Asia was lighter than usual due to Lunar New Year holidays in Hong Kong, China, and Taiwan. However, MSCI’s broad Asia-Pacific index outside Japan climbed 0.5%, and Japan’s Nikkei gained 0.85%, led by strong performances in technology stocks. South Korea’s Kospi surged nearly 3% to a record high, reflecting growing investor confidence in the tech sector.

The positive momentum followed gains on Wall Street, where Nvidia shares jumped after announcing a multiyear agreement to supply Meta Platforms with millions of artificial intelligence chips. The deal boosted sentiment across global tech stocks, with Nasdaq futures rising 0.05% and S&P 500 futures edging 0.03% higher. Analysts noted that Nvidia’s leadership in AI technology could provide fresh support for the sector ahead of its upcoming earnings report.

In commodities, oil prices remained elevated after sharp gains in the previous session. Brent crude hovered around $70.31 per barrel, while U.S. West Texas Intermediate crude held near $65.10. Markets are closely monitoring escalating U.S.-Iran tensions, which could disrupt global oil supply. Meanwhile, gold steadied at $4,963.99 per ounce as investors sought safe-haven assets amid geopolitical uncertainty.

The U.S. dollar strengthened following robust economic data and Federal Reserve minutes indicating that rate cuts are unlikely in the near term. Policymakers even signaled openness to further rate hikes if inflation persists. Sterling slipped to $1.3488, the yen remained near 155 per dollar, and the euro traded below $1.18, pressured by reports that European Central Bank President Christine Lagarde may leave her post early.

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