Public Markets 8-Hour Briefing

Global Markets

Asian stocks joined a rally in technology shares that lifted Wall Street benchmarks, with South Korea's Kospi breaking above 6000 and gaining over 40% this year. The tech-led rally extended globally, while Nasdaq bounced back after AMD-Meta deal on AI chips. However, AI-linked fears continue to roil some corners of Wall Street after years of hype and gains, with a recent report rattling markets.

Commodities

Oil rose as traders brace for U.S.-Iran talks, holding near a seven-month high as investors await the next round of discussions. Meanwhile, gold steadied as traders weighed uncertainty around US import tariffs and reduced prospects of a near-term cut to interest rates. The precious metal had edged higher earlier on possible position adjustments.

Corporate Earnings

HSBC faces an earnings test as its stock rallies 89% from a low. In Australia, Wise Tech jumped on upbeat half-year earnings and AI-driven job cuts, while Woolworths shares surged on strong half-year results. Cava reported fourth-quarter sales rising 21% on higher prices and new restaurant openings, though HP saw its stock fall after hours following conservative guidance.

Fed Policy

Bond traders are betting on Fed rate cuts spilling into 2027, while Fed's Collins said interest rates are likely to stay unchanged "for some time" as recent economic data shows improvement in the labor market. The yen consolidated against other G-10 and Asian currencies amid uncertainty over the BOJ's rate-hike cycle.

Asia-Pacific Markets

South Korea's equity benchmark has crossed a new milestone as surging global memory demand powers the country's biggest chipmakers. The nation's market value has surpassed France's, propelled by gains in technology shares riding the global boom in artificial intelligence. In Australia, consumer price index rose more than expected in January, with core inflation accelerating.