Asian shares moved higher after Wall Street rebounded, with semiconductor stocks leading gains across the region.
The broader Asia-Pacific market outside Japan rose by about 1.2 per cent. South Korea’s KOSPI gained more than 6%, while Japan’s Nikkei 225 advanced around 1.9%. US equity futures were broadly flat, with S&P 500 futures slightly lower.
Chipmakers drove much of the recovery after recent losses. The move reflected continued confidence in demand linked to artificial intelligence, data centres and advanced computing. The key issue now is whether major technology companies can show that heavy spending on artificial intelligence is producing clear commercial returns.
Alphabet and Tesla are among the next major companies due to report results. Alphabet is expected to face questions about delays to an artificial intelligence model that is important to its wider strategy. Tesla is likely to report higher spending on artificial intelligence and robotics, which could lead to its first quarterly cash outflow in more than two years.
These results will be closely watched because they may influence confidence in technology valuations. Strong earnings or clear evidence of future returns could support the sector. Weaker guidance or higher-than-expected spending could increase pressure on share prices.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
