Asian stocks are poised to track Wall Street higher, driven by a rally in technology shares and a slump in oil prices that pushed US benchmarks to their best day in seven months. Equity-index futures for South Korea, Japan, and Taiwan point to gains of at least 2%, while Australia indicates more modest advances. The S&P 500 rose 2.3%, its highest close since April 8, and the Nasdaq 100 jumped 3.4% after a near 7% surge in a chipmaker gauge.
Despite a 4.3% slump in Nvidia Corp following CEO Jensen Huang's admission of an affair, the tech rally reflects investor repositioning rather than a structural downturn. Brent crude slumped nearly 6% to below $93 a barrel after President Donald Trump signaled a more conciliatory tone on Iran, helping temper inflation fears. Treasury yields edged higher, and the dollar gauge fell for the first time in three sessions.
Investors now await October US consumer prices data due Tuesday, expecting smaller increases than September, with breakeven rates showing moderated inflation expectations. Edward Jones' Brock Weimer recommends maintaining an overweight equity allocation, while UBS notes the recent selloff was a reset within the AI cycle. E*Trade's Chris Larkin believes the long-term market rally remains intact despite concentrated positioning risks.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing