“At this juncture, markets appear to be operating on two axes of differentiation — AI/tech momentum and oil/geopolitical risk,” said Vivek Rajpal, Asia strategist at JB Drax Honore in Singapore. “With no incrementally negative news on the geopolitical or oil-price front, markets are finding more latitude to refocus on the AI cycle.”
Some of the largest technology companies in the world delivered strong earnings in the previous week, including Alphabet Inc, Apple Inc and Amazon Inc. Stock indices in regions seen as key drivers of the AI trade rallied, with Korea’s Kospi advancing to a fresh high. Taiwanese stocks opened more than 2% higher.
In China, shares of electric vehicle makers rose after they reported sales that beat estimates. Meanwhile, the dollar bond market in Asia-Pacific witnessed its strongest April in five years, with US$38 billion of offerings.
See also: Tech founder’s downfall in Indonesia shows rising business risks
Investor sentiment got a boost as President Donald Trump said the US will begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday. He described discussions with Tehran as “very positive” after it received Washington’s response to its latest proposal to end the war.
Steps to guide neutral ships out through the Strait of Hormuz could pave the way for smoother energy flows after a near-full blockade for two months which roiled global markets.
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