This content was published on
August 5, 2026 - 03:54
5 minutes
(Bloomberg) — Asian shares tracked Wall Street higher as investors returned to the artificial intelligence trade, helping stoke a rally in semiconductor stocks.MSCI’s Asia Pacific equities gauge climbed 1.9%, its first gain in three sessions, reaching the highest intraday level since mid-July. South Korea’s Kospi Index rallied 4.2%, while Australian shares hit an all-time high.Chip stocks remained in focus after a US semiconductor gauge posted its strongest four-day advance since 2020. Samsung Electronics Co. and SK Hynix Inc. both gained more than 2% in Seoul, while Taiwan Semiconductor Manufacturing Co. climbed 3.5%.Futures contracts for the S&P 500 Index edged higher in early Asian trading after the benchmark closed at a record high on Tuesday. Caution lingered, however, as SpaceX shares fell 7.5% in extended trading after the company projected higher-than-expected spending on its AI business. Advanced Micro Devices Inc. also slid 9% after an underwhelming outlook.Elsewhere, Brent pared some of its losses caused by optimism over a possible interim deal between Washington and Tehran. The commodity traded at $79.75 a barrel as prospects for an agreement centered on reopening the Strait of Hormuz appeared to gain momentum. Treasuries held their gains from the previous session as traders curbed expectations for interest-rate hikes, while the yen’s gains, fueled by the joint US-Japan intervention, stalled.Investors will now be watching whether progress toward reopening the key shipping route extends the recent decline in oil prices, easing inflation pressures and reducing expectations for Federal Reserve rate hikes. They will also be assessing whether the AI trade can regain momentum after a month of volatility erased gains at several hedge funds.“Tech results over the past week clearly show that AI investment will continue to rise sharply,” said Vey-Sern Ling, managing director at Union Bancaire Privée. “This is reassuring for investors, especially with valuations now looking much more reasonable after the recent correction.”In other corners of the market, Treasuries rallied in the New York session as signs of progress toward a diplomatic resolution of the Iran war sent oil prices lower, curbing expectations for more than one Fed interest-rate hike in the coming year.The yield on the benchmark 10-year Treasury edged higher to 4.62% early Wednesday, while a Bloomberg gauge of the dollar was little changed. Gold rose to about $4,090 an ounce as the decline in oil prices reduced expectations that rates will stay higher for longer.Elsewhere, Asia-based hedge funds logged extensive losses in July, as the tech selloff led to what Goldman Sachs Group Inc. prime brokers said was the worst month for regional stockpickers on record.Back to geopolitical news, a short-term deal may help normalize commercial shipping in the strait — a crucial conduit for global energy supplies — and prevent the resumption of fighting in the Middle East.But even if such an agreement is reached, it might still fail to end the war conclusively or resolve Trump’s concerns about Iran’s nuclear program.Qatar said a proposal had been drafted, while US and Iranian officials expressed optimism about an agreement to reopen the crucial waterway, impacting oil prices.“With so much optimism now priced into the oil market — and the risk of a repeat of last week’s false dawn still very real — the balance of risks appears to be becoming more skewed back to the upside,” wrote Tony Sycamore, an analyst at IG Markets in Sydney.Corporate Highlights:SpaceX fleshed out its plans to compete directly with the largest mobile phone carriers in the US by complementing its satellite-based internet service with land-based infrastructure. The Federal Communications Commission is drafting a ban on imports of some Chinese data center components to protect US data center infrastructure, Reuters reported. Chipotle Mexican Grill Inc. removed jalapeños from multiple stores in Minnesota after learning the peppers may be linked to a salmonella outbreak in the state that’s sickened 110 people. India expanded the size of its share sale in Life Insurance Corp. to raise $3.3 billion after the base offer was oversubscribed. Some of the main moves in markets:StocksS&P 500 futures rose 0.2% as of 10:46 a.m. Tokyo time Nikkei 225 futures (OSE) rose 3.4% Japan’s Topix rose 1.6% Australia’s S&P/ASX 200 rose 0.1% Hong Kong’s Hang Seng fell 0.4% The Shanghai Composite rose 0.5% Euro Stoxx 50 futures rose 0.3% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1528 The Japanese yen was little changed at 157.62 per dollar The offshore yuan was little changed at 6.7459 per dollar The Australian dollar was little changed at $0.7043 CryptocurrenciesBitcoin fell 0.2% to $64,169.52 Ether fell 0.3% to $1,870.37 BondsThe yield on 10-year Treasuries advanced one basis point to 4.62% Japan’s 10-year yield declined 2.5 basis points to 2.830% Australia’s 10-year yield declined four basis points to 4.93% CommoditiesWest Texas Intermediate crude rose 0.2% to $75.90 a barrel Spot gold rose 0.4% to $4,094.28 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Toby Alder, Winnie Hsu and John Cheng.©2026 Bloomberg L.P.
