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June 3, 2026 - 03:55
5 minutes
(Bloomberg) — Asian stocks climbed to a record as investors doubled down on the artificial-intelligence trade that has powered global equities to all-time highs. The yen hovered near 160 per dollar.The MSCI Asia Pacific Index rose 0.8% to an all-time high, as technology shares rallied and chipmaker Tokyo Electron Ltd. jumped 10%. Taiwan’s benchmark gauge advanced 1.7% to a record, with Taiwan Semiconductor Manufacturing Co. climbing to a peak. South Korean markets were shut for a holiday.The Asian gains came after the S&P 500 and Nasdaq 100 hit record highs, with an index of chipmakers rising nearly 6%.Even so, caution crept in as Brent crude rose 1% to $97 a barrel on pessimism over the prospects of the US and Iran reaching a peace deal and as fresh fighting flared up in the Middle East.Treasuries edged lower with the yield on the 10-year bond rising one basis point to 4.45%. The first of three labor-market reports due this week reinforced wagers that the Federal Reserve’s next move will be to raise interest rates.Investors piling into AI-linked stocks have propelled global equities to record highs, with expectations for a deal to end the war that has rattled markets worldwide providing an additional boost. Traders have looked past concerns about elevated valuations, betting that strong earnings growth and easing geopolitical tensions will continue to support risk assets.“Tech continues to dominate the market,” said veteran strategist Louis Navellier. “The trend remains positive, with the catalyst for further material gains possible with a resolution with Iran.”What Bloomberg Strategists Say…“While further exchanges in Iran initially dented risk appetite and lifted WTI toward $96 a barrel in early Asia trading, crude has since pared some of those gains, providing a timely boost to market sentiment at the opening bell.”— David Savage, Macro Squawk. For more on the analysis, click here.Focus in Asia is on the yen as traders awaited Bank of Japan Governor Kazuo Ueda’s planned speech for clues on the outlook for interest rates. Traders are reluctant to push the yen beyond the key 160 level against the dollar in the face of the risk of intervention by authorities to prop up the currency.In other corners of the market, gold edged lower to about $4,470 an ounce as inflation worries fueled expectations that borrowing costs will stay elevated for longer. Bitcoin slid to around $66,500.Elsewhere, Cliffwater LLC’s flagship private credit fund capped redemptions at 5% in the second quarter after investors looked to pull about 17% of shares, in a sign of enduring pressure on the $1.8 trillion market.Meanwhile, President Donald Trump remained optimistic the US can reach an interim peace deal soon. He disputed reports in Iranian state media that said talks with Washington had been suspended over the fighting in Lebanon, saying the two sides have been “continuously” having conversations, including “today.”Tensions remained high in the region as US forces defeated multiple Iranian ballistic missiles and drones, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran.The primary focus for the oil market remains the Strait of Hormuz, which handled about one-fifth of global oil and liquefied natural gas flows before the war began — with visible commercial traffic through the waterway remaining limited.Even as businesses navigated rising energy costs sparked by the Iran war, US job openings jumped in April to the highest level in almost two years and layoffs fell, adding to signs the labor market remained resilient.“The jobs market continues to hold its ground,” said Bret Kenwell at eToro. “There’s hope that energy prices will retreat after a geopolitically charged surge in the first quarter, allowing the Fed to stay on hold while inflation eases in the second half of the year. Pair that with rising earnings expectations, and it could help propel stock prices higher.”Corporate News:SpaceX plans to raise $75 billion in IPO by selling 555.6 million shares at a target price of $135 per share, Reuters reported, citing a source familiar with the matter. Marvell Technology Inc. shares surged the most in 26 years after Nvidia Corp.’s Jensen Huang predicted that the semiconductor and networking company would be the next business to hit a $1 trillion valuation. Palo Alto Networks Inc. released a forecast for adjusted earnings that was stronger than anticipated. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 10:52 a.m. Tokyo time Japan’s Topix rose 1.5% Australia’s S&P/ASX 200 rose 0.4% Hong Kong’s Hang Seng fell 1% The Shanghai Composite rose 0.2% Euro Stoxx 50 futures fell 0.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1631 The Japanese yen was little changed at 159.85 per dollar The offshore yuan was little changed at 6.7653 per dollar CryptocurrenciesBitcoin fell 1.2% to $66,703.52 Ether fell 2.4% to $1,859.1 BondsThe yield on 10-year Treasuries advanced one basis point to 4.45% Japan’s 10-year yield advanced 2.5 basis points to 2.595% Australia’s 10-year yield advanced two basis points to 4.90% CommoditiesWest Texas Intermediate crude rose 1.2% to $94.86 a barrel Spot gold fell 0.3% to $4,475.35 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Rob Verdonck.©2026 Bloomberg L.P.
