Asian Markets Reach Record Highs on AI Optimism and Fed Rate-Cut Hopes Despite US Shutdown

Asian and global stock markets have shown strong gains driven by investor optimism around artificial intelligence (AI) advancements and expectations of Federal Reserve interest rate cuts. Key developments include Japan's Hitachi partnering with OpenAI, prompting a surge in tech stocks, and record highs in Taiwan and Singapore markets alongside broader emerging Asian equities. Despite the ongoing U.S. government shutdown causing delays in economic data releases, markets have remained resilient, reflecting a historical tendency to downplay shutdown impacts on economic growth and market performance. European and U.S. markets also reached record levels, buoyed by AI enthusiasm and positive economic sentiment. Investors continue to monitor upcoming central bank policies and economic indicators, while largely focusing on the broader implications of AI and monetary easing rather than the political impasse in Washington. Overall, the market momentum underscores a robust appetite for risk assets amid a favorable outlook on AI-led growth and monetary policy easing.