Asian Markets Surge on US Rate Cut Hopes and Chip Deal

Asian and global stock markets surged driven by optimism over potential U.S. Federal Reserve interest rate cuts following weak U.S. labor market data and despite a partial U.S. government shutdown. Technology shares, especially semiconductor firms like Samsung, SK Hynix, and TSMC, rallied significantly due to a new chip supply agreement with OpenAI, fueling AI-related market enthusiasm. Key indices such as South Korea's KOSPI, Japan's Nikkei, and Taiwan's Taiex reached record highs, while European markets also rose alongside tech stocks. The U.S. labor data from ADP showed job losses, intensifying expectations for further Fed rate cuts later in the year, even as some government payroll data releases were delayed by the shutdown. Investors also sought safe havens, pushing gold prices to record levels and triggering declines in U.S. Treasury yields and the dollar. Overall, the market optimism about accommodative monetary policy and tech sector growth is tempered by concerns over economic uncertainties and the impact of government shutdowns on economic data transparency and labor markets.