Global Market Today: Asian shares, US futures rise on AI-trade revival

Asian shares

The MSCI Asia Pacific Index climbed 0.6% with shares gaining in South Korea and Japan. The Kospi Index rose 1.9%, rebounding after one of the country’s worst IPO debuts on record.

Futures for the Nasdaq 100 climbed 0.7% after SpaceX reported quarterly net income that more than doubled estimates, sending its shares up around 7% in extended trading. Super Micro Computer Inc. also topped expectations, lifting AI-infrastructure shares in extended trading. The company surged 15% in post-market trading, while Netflix Inc. fell after issuing a disappointing forecast.

In Australia, Nextdc Ltd. shares plunged 44% after the data-center developer cut its outlook and renewed its capital expenditure program.

Elsewhere, oil steadied after a choppy session on Tuesday that saw traders parse conflicting headlines on efforts to end the US-Iran war. Brent crude rose 0.7% to trade near $109.50 a barrel early Wednesday. Long-term Treasuries outperformed during the New York session, weighing on the dollar.

The earnings from tech companies offered some reassurance after concerns over AI valuations and financing rattled technology shares last week. Attention now turns to a packed earnings slate for signs that growth can justify the billions being poured into computing infrastructure, with Meta Platforms Inc. and Tesla Inc. due to report Wednesday.

“Clear earnings beats and constructive corporate updates are helping to ease some of the AI anxiety that has surfaced in recent sessions,” said Tim Waterer, chief market analyst at KCM Trade. “The next test comes with Meta and Tesla. If those reports deliver similarly strong results and guidance, it could go some way toward reigniting broader AI enthusiasm and giving the sector more sustained momentum.”

Elon Musk’s satellite, rocket and AI conglomerate posted $4.4 billion in net income for the quarter ended September, compared with analysts’ average estimate of $1.88 billion. Revenue surged 161% from a year earlier and also beat expectations.

Separately, Musk said SpaceX and Tesla Inc. have formed special committees to explore a potential merger, a preliminary step toward what would rank as the largest corporate tie-up of all time.

Some market participants remain wary of the AI sector. Billionaire Ken Griffin said investors are “almost certainly” in the midst of an AI bubble, with many companies still grappling with how much to spend on the technology and its potential to transform the economy.

While oil prices have been a dominant driver of Treasury yields for much of this year, bond investors largely ignored them last week amid a selloff in stocks that have benefited from investment in AI.

“The AI risk-off trade that bubbled up last week is still top of mind in rates markets and seems to be driving the price action today, although the move lower in oil also helped put some downward pressure on yields,” said Izaac Brook, US rates strategist at RBC Capital Markets.