Macro update
Global equities reach record highs: MSCI’s All-Country World Index, Emerging Markets index and Asia-Pacific benchmark ex-Japan all hit fresh records as investors extended AI-driven equity buying, while the S&P 500 and Nasdaq also closed at new highs overnight.
South Korea rally: The Kospi surged 6.6% and moved above the 7,000 level for the first time after reopening from holiday, supported by a 14.8% jump in Samsung Electronics, which surpassed a $1 trillion valuation on optimism around AI semiconductor demand.
AI spending boom: Chipmakers and technology stocks continued to lead gains after AMD forecast stronger-than-expected second-quarter revenue, with robust hyperscaler spending on AI infrastructure supporting Asian tech, industrial and materials sectors.
Yen intervention speculation: The yen strengthened sharply to around 155 per dollar after gaining nearly 2% intraday, with traders citing possible intervention by Japanese authorities following renewed warnings against speculative currency moves.
Oil falls on Iran hopes: Brent crude dropped around 1.7% to near $108 a barrel after Donald Trump said there had been “great progress” towards a potential deal with Iran and announced a temporary pause to a US operation escorting ships through the Strait of Hormuz.
Dollar weakens, gold rises: The dollar index fell 0.3% as the euro, sterling, Australian dollar and New Zealand dollar advanced, while gold climbed more than 2% amid currency volatility and ongoing geopolitical uncertainty.
Nasdaq 100 trades in record highs
The Nasdaq 100 continues its surge higher and is fast approaching the 100% Fibonacci extension of the 2022-to-February 2025 advance, projected higher from the April 2025 low at 28,324. Further up sits a 261.8% Fibonacci extension at 28,860 which may also be reached.
Minor support may be found around Friday and Monday’s highs at 27,822-to-27,787.
Short-term outlook: bullish, targeting new record highs while above the 28 April low at 26,878
Medium-term outlook: bullish while above the 21 April low at 26,405