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Tech optimism drives global stock rally

Asian equity markets were trading higher on Wednesday, with Japanese, South Korean and Australian stocks all at record levels as strong technology shares and solid earnings continued to lift sentiment across the region. The positive tone followed gains on Wall Street, where US indices advanced on Tuesday, led by tech and software names. In Europe, major indices were broadly stable at the start of the week, though Switzerland’s SMI rose above a key psychological threshold to set a new record. Gold firmed, the US dollar was under pressure, and US Treasury yields moved higher. Investors will be closely watching Nvidia's earnings figures on Wednesday for any signs of peak AI investments.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

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Asian equity markets advanced on Wednesday, with Japan’s Nikkei 225 climbing 2.2% to a new record and South Korea’s KOSPI rising over 1.9% to an all-time high as well, driven by strong technology shares and upbeat leads from Wall Street. Australia’s ASX 200 also reached a record, gaining 1.2% on robust half-year earnings from supermarket group Woolworths and major miners such as BHP, Rio Tinto and Fortescue. China’s CSI 300 was trading 0.4% higher, extending gains after returning from the Lunar New Year holiday and helped by lower US trade tariffs and strong holiday spending. Hong Kong’s Hang Seng rose 0.3% as local technology stocks recovered some of their recent losses. Investors across the region focused on upcoming earnings from AI chip leader Nvidia, with memory makers Samsung Electronics and SK Hynix in South Korea hitting record levels.

US equities rise on AI optimism

US stock indices advanced on Tuesday as easing concerns about competitive threats from AI supported technology shares. The Dow Jones Industrial Average climbed 0.8% to 49,174.50 points, the S&P 500 rose 0.8% to 6890.07 points and the technology-heavy Nasdaq 100 gained 1.1% to 24,977.05 points. Sentiment in the software sector improved after AI startup Anthropic signalled plans to expand its chatbot Claude via partnerships and stressed that it aims to cooperate rather than disrupt, helping shares of data and software providers such as Factset, Thomson Reuters and Adobe to strong gains. In macroeconomics, US consumer confidence rose in February, with The Conference Board’s headline index increasing to 91.2 points from 89 in January, according to data released on Tuesday.

European stocks steady as SMI hits record

European equities ended little changed on Tuesday as uncertainty over US tariff policy and investor caution ahead of Nvidia’s quarterly results kept trading subdued, with the EuroStoxx 50 edging up 0.1% and Switzerland’s SMI surpassing 14,000 points, reaching a new record, and closing 1% higher. Germany’s DAX was essentially flat, and France’s CAC 40 rose 0.3%. Car manufacturers were the strongest segment, with Volkswagen, Mercedes-Benz, BMW and Renault gaining despite a weak European Union car market that saw new registrations fall 3.9% year-on-year in January to 799,625 vehicles, as demand continued to shift towards electric models.

Gold climbs on US tariff worries

Gold prices edged higher in Asian trading on Wednesday after falling 1.6% on Tuesday, as investors reassessed the impact of newly implemented US import tariffs and looked ahead to nuclear talks between the US and Iran in Geneva on Thursday. Spot gold nearly 1% to around USD 5190 per ounce, supported by safe-haven demand following the start of a temporary 10% global import levy that the Trump administration aims to lift to 15% after a Supreme Court ruling last week forced a redesign of its tariff framework. Silver gained about 3.7% to trade just over USD 90 per ounce. Meanwhile, the US dollar remained under pressure and US Treasury yields rose across the curve.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Diageo, E.ON, Iberdrola, Lowe's, and Nvidia.

Economic data in focus: German gross domestic product (08:00), German GfK Consumer Climate (08:00) and euro-area Consumer Price Index (11:00).

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