Global markets surged on Thursday as fresh US jobs data bolstered expectations of further interest rate cuts by the Federal Reserve, overshadowing concerns about a partial government shutdown in Washington.
Equities soared, led by technology firms, after payroll processor ADP reported that US private companies shed 32,000 jobs in the past month—well below forecasts of a 50,000 gain. Analysts say the weak data reinforces the case for at least two more Fed rate cuts before year-end.
The upbeat sentiment was amplified by a landmark deal between OpenAI and South Korea’s top chipmakers, Samsung and SK Hynix, to supply advanced components for OpenAI’s Stargate project. The announcement sent chip stocks sharply higher, fueling a broader AI-driven rally that has propelled global markets to record highs.
Wall Street’s main indexes closed higher, with the S&P 500 and Nasdaq setting fresh records. The momentum carried into Asia, where Tokyo, Sydney, Singapore, Wellington, Bangkok, Manila and Jakarta all posted gains. Hong Kong’s Hang Seng climbed nearly 2% as traders returned from a midweek holiday, while Seoul’s Kospi jumped 2.7% to a record high, boosted by a 12% surge in SK Hynix and a 5% rise in Samsung.
Taipei’s TAIEX index also added 1.5%, with semiconductor giant TSMC gaining 3%. Tech firms in Hong Kong, including Alibaba, Tencent, and JD.com, advanced between 2% and 4%, extending the AI-led market momentum.
European markets opened on a positive note, with London, Paris and Frankfurt posting healthy early gains.
Despite political gridlock in Washington threatening to disrupt government operations and key data releases, investors remain focused on the Fed’s next move. Economists caution that ongoing layoffs in goods-producing industries and professional services, driven partly by AI adoption and tariff uncertainty, could weigh on the labor market further.
For now, investors are betting that the slowdown will keep the Fed on track to loosen policy—an outlook driving global risk appetite.
Key Market Figures (0715 GMT):
Tokyo (Nikkei 225): +0.9% at 44,936.73 (close)
Hong Kong (Hang Seng): +1.9% at 27,363.39
Shanghai (Composite): Closed for holiday
London (FTSE 100): +0.2% at 9,465.92
Euro/Dollar: $1.1737, up from $1.1728
Pound/Dollar: $1.3480, up from $1.3476
Dollar/Yen: 147.22 yen, up from 147.14
Euro/Pound: 87.07 pence, up from 87.04
WTI Crude: +0.2% at $61.89 per barrel
Brent Crude: +0.2% at $65.45 per barrel
New York (Dow Jones): +0.1% at 46,441.10 (close)
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