Asian share markets looked set to extend recent gains on Tuesday, driven by strong investor optimism around artificial intelligence (AI) and tech stocks, while bets on further US interest rate cuts pushed gold to fresh record levels.Wall Street had reached another record after Nvidia announced it would invest up to $100 billion in OpenAI, with the first data centre equipment expected in the second half of 2026.“With US tech/AI currently in red-hot form, we’d need to see something leftfield to derail the upbeat flows that are the driving force of Oracle, Apple, Nvidia, Tesla, and some of the US hardware plays,” said Chris Weston, head of research at broker Pepperstone, as quoted by Reuters.Weston noted that the seemingly inexorable rise in tech has been attracting money from momentum funds and options traders, becoming almost self-fulfilling. Investors are also hedging their exposure to equities by buying gold, which hit a fresh record of $3,755.47 per ounce, up nearly 9% so far this month.The tech rally has boosted chip sectors across Asia. South Korean stocks rose 0.2%, having surged almost 9% this month, while Taiwan climbed nearly 7%. Japan’s Nikkei was closed for a holiday but has risen 6.5% in September. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, up 5.5% for the month. Chinese blue chips edged up 0.1%.European equities have generally lagged behind the tech surge. EUROSTOXX 50 futures gained 0.1%, FTSE futures rose 0.1%, and DAX futures added 0.2%. S&P 500 and Nasdaq futures were largely unchanged after reaching new peaks overnight.
Mixed signals from Federal Reserve
Equities globally have been underpinned by expectations of further rate cuts from the Federal Reserve following last week’s easing. Futures indicate roughly a 90% chance of a quarter-point cut in October and a 75% probability of another cut in December.Markets remain dovish despite mixed messaging from the Fed. Speaking on Monday, new Fed Governor Stephen Miran, handpicked by US President Donald Trump, argued for sharply lower rates, while three colleagues stressed the need for caution on inflation. Fed chair Jerome Powell is scheduled to speak later Tuesday on the economic outlook and policy.Treasuries have also been supported by expectations of lower short-term rates, even as markets brace for a large government and corporate debt issuance this week: $69 billion in two-year notes on Tuesday, followed by $70 billion in five-year notes and $44 billion in seven-year paper. Investors are also watching the September 30 US government funding deadline.
Currency and commodity markets
In currencies, the dollar eased after three consecutive sessions of gains. The euro remained steady at $1.1809, rebounding from a $1.1726 low on Monday, while the dollar slipped to 147.68 yen from a high of 148.37. Sweden’s crown held at 9.3497 per dollar ahead of a central bank meeting, where futures imply about a one-in-three chance of a rate cut.Oil prices were restrained as concerns of oversupply outweighed geopolitical tensions in Russia and the Middle East. Brent crude eased 0.2% to $66.46 a barrel, while US crude dipped 0.1% to $62.21 per barrel.
