Asia Stocks Rise on AI Momentum, Gold Hits Fresh Record

Most Asian stock markets extended recent gains on Tuesday, supported by strong optimism in the AI sector and ongoing bets on further U.S. interest rate cuts. The bullish sentiment also kept gold prices near record highs.

Nvidia Deal Fuels Tech Optimism

Wall Street hit another record high after Nvidia announced plans to invest up to $100 billion in OpenAI, with the first datacenter hardware scheduled for delivery in late 2026.

“U.S. tech and AI are red-hot right now. It would take a major shock to derail the strong momentum lifting Nvidia, Apple, Tesla, Oracle, and other hardware players,” said Chris Weston, head of research at Pepperstone.

Momentum funds and options traders continued piling into tech, creating a self-reinforcing rally. Meanwhile, some investors hedged by buying gold, another asset seeing strong inflows.

Gold Extends Rally to Record Levels

Spot gold surged to a fresh high of $3,759.02 per ounce, up nearly 9% for the month. The demand for safe-haven assets comes alongside market bets on more Fed rate cuts.

Asian Market Performance

• South Korea’s KOSPI gained 0.5%, up more than 9% this month.
• Japan’s Nikkei was closed for a holiday but has advanced 6.5% in September.
• Taiwan stocks climbed nearly 7% this month.
• China’s blue chips slipped 0.8% as recent liquidity-driven rallies lost steam.
• MSCI’s Asia-Pacific index (excluding Japan) was flat on the day but up 5.5% this month.

European and US Markets Steady

In Europe, EUROSTOXX 50 futures rose 0.1%, FTSE futures added 0.1%, and DAX futures gained 0.2%. U.S. futures were little changed after the S&P 500 and Nasdaq set new records overnight.

Fed Outlook and Economic Risks

Markets still expect more Federal Reserve rate cuts, with futures pricing in a 90% chance of a 25 bps cut in October and 75% odds of another in December.

However, Fed officials remain divided. New Governor Stephen Miran, appointed by President Donald Trump, called for aggressive cuts, while others warned of persistent inflation risks. Jerome Powell will deliver remarks later today on the economic outlook.

Global PMI surveys are also due, offering updates on manufacturing activity under pressure from U.S. tariffs. Meanwhile, the U.S. faces a possible government shutdown as the September 30 budget deadline approaches.

Currencies and Commodities

The U.S. dollar traded mixed, with the euro steady at $1.1803 and the yen at 147.77 per dollar. Sweden’s crown was flat as markets awaited the central bank’s rate decision.

In commodities, oil prices weakened as oversupply concerns outweighed geopolitical risks. Brent crude fell 0.5% to $66.24 a barrel, while WTI crude slipped 0.5% to $61.98.