Asian stock markets have surged to record highs, driven by optimism surrounding artificial intelligence and expectations of US Federal Reserve interest rate cuts. Japan, South Korea and Taiwan indexes have all reached record levels, with chipmakers like SK Hynix, Samsung Electronics and Taiwan Semiconductor Manufacturing contributing significantly to the gains.
The anticipation of US rate cuts has boosted market sentiment, promising lower borrowing costs globally and easing pressure on bond markets. This expectation was reinforced by recent US inflation and jobs data.
Japan's Nikkei 225 index notably jumped, reaching a new record high following Prime Minister Shigeru Ishiba's resignation, which spurred hopes for more expansionary fiscal policies. China's Shanghai Composite also saw gains, fuelled by renewed optimism in the AI sector.
