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Semiconductor rally lifts stock markets

Semiconductor shares drove Asian markets higher on Wednesday, with South Korea’s Kospi surging to a record above 7400 as Samsung Electronics and SK Hynix rallied strongly, while upbeat results from US chipmaker AMD boosted sentiment across the sector. US stocks also rose on Tuesday, with the S&P 500 and Nasdaq 100 both closing at record highs, as strong corporate earnings and easing Middle East tensions supported risk appetite. Investors will now look to the US ADP employment report on Wednesday for fresh signals on the labour market outlook.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

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South Korea’s Kospi surged to a record above 7400 points on Wednesday, rising 6.8% after trading resumed following a holiday, while Samsung Electronics jumped 14% to an all-time high and SK Hynix gained over 10%. Elsewhere in the Asia-Pacific region, Australia’s S&P/ASX 200 was up 1.1% and Hong Kong’s Hang Seng Index was trading 0.9% higher. Mainland China’s CSI 300 gained 1.4%, India’s Nifty 50 was up 0.2%, and Japan’s Nikkei 225 was trading 0.4% higher. The broader Asia-Pacific rally followed Wall Street’s overnight gains and was supported by lower oil prices after US President Donald Trump signalled that efforts to ease tensions in the Middle East were progressing. Oil prices fell further, with Brent crude oil trading around USD 108.62 and West Texas Intermediate (WTI) at USD 101.01 per barrel, as concerns over disruption in the Strait of Hormuz eased. The US dollar weakened, with the Dollar Index down 0.4%, and gold prices were climbing on Wednesday, trading around USD 4650 per ounce.

US stocks rebound to records

US stocks rose on Tuesday after losses at the start of the week, with the S&P 500 closing at a record 7259.22 points, up 0.8%, while the Nasdaq 100 also ended at an all-time high of 28,015.06 points, gaining 1.3%, and the Dow Jones Industrial Average advanced 0.7% to 49,298.25 points. Sentiment was supported by strong corporate earnings and signs that the ceasefire between the US and Iran was holding, which pushed oil prices lower and eased concerns about a broader conflict. Among individual movers, chipmaker Intel and iPhone maker Apple gained on reported processor supply talks. AMD shares jumped 17.5% in after-hours trading on Tuesday after the US chip designer reported first-quarter earnings and revenue above expectations and issued stronger-than-expected second-quarter revenue guidance, driven by robust AI-related data-centre demand.

US job openings little changed

In macroeconomic data, US job openings were unchanged at 6.9 million in March, the Job Openings and Labor Turnover Survey (JOLTS) showed on Tuesday, while hires rose to 5.6 million from 4.9 million in February and total separations were little changed at 5.4 million. The hiring rate increased to 3.5% from 3.1%, more than reversing the previous month’s decline, while the job openings rate held at 4.1%. The rise in job cuts was driven mainly by professional and business services, with additional weakness in trade, transportation and utilities. In a separate data release, US services sector activity eased to 53.6 in April, Institute for Supply Management data showed on Tuesday, down from 54.0 in March and slightly below expectations, although it remained in expansion territory.

Swiss inflation rises in April

Swiss consumer prices increased by 0.3% in April, with annual inflation accelerating to 0.6% from 0.3% in March, data from the Federal Statistical Office showed on Tuesday. The monthly rise was driven mainly by higher prices for petrol, diesel, heating oil, air travel and international package holidays, while hotel stays and car rental became cheaper. Core inflation was unchanged on the month and stood at 0.3% year-on-year, while prices for imported goods rose 1.5% from March and 0.9% from a year earlier. Switzerland’s harmonised inflation measure, which is comparable with EU countries, increased 0.6% on the month and 0.5% on the year. European stock indices closed firmly higher on Tuesday. The Euro Stoxx 50 rose 1.8%, while Germany’s DAX gained 1.7% and France’s CAC 40 added 1.1%. Switzerland’s SMI also ended Tuesday in positive territory, rising 0.4%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Adyen, Arm, CVS Health, Diageo, Koninklijke Ahold Delhaize, Novo Nordisk, Uber, and Walt Disney.

Economic data in focus: Purchasing Managers’ Index data for Germany (09:55), the euro area (10:00), the UK (10:30) and Canada (16:00), as well as the US ADP National Employment Report (14:15).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.