Chris Becker

Asian equities are not doing well as markets start agitate over AI amid tonight’s looming US jobs report with the recent strength in the USD about to be tested.

Overnight saw the fear around the AI bubble rise again as Wall Street cratered, but also some reality crept in as private job data indicated more job cuts than growth in the US economy as the bite from the government shutdown continues to be felt.

Asian equities are doing well as markets start to price the possibility that the US tariffs maybe reversed following initial comments from the US Supreme Court challenge, although that institution is as compromised as Congress so don’t hold your breath.

Risk markets were in buy the dip mode overnight as Wall Street rebounded after speculation that tariff relief maybe around the corner alongside better than expected US economic data.

The fallout from last night’s selloff on Wall Street has hit most of Asian markets in today’s session although local shares escaped the carnage following yesterday’s hold from the RBA.

Wall Street corrected sharply overnight led mainly by tech stocks as the NASDAQ fell back nearly 2% in response to a variety of concerns – mainly the looming spectre of stagflation – but also some disappointment around earnings at the orc-stronghold of Palantir.

Not much action on Asian markets in today’s session with local markets pivoting on the RBA meeting where as expected the boffins of Martin Place held fire again and put out most chances of further rate cuts in the future.

Yet again Wall Street only rallied overnight due to tech giants as the AI bubble keeps the mirage of everything afloat.

Asian markets are generally steady following the weekend gap with traders absorbing the outcome of the Trump-Xi summit last week amid some other economy releases, not withstanding last week’s Fed meeting which saw a “cut and wait” approach as too much inflation and not enough job growth plagues the Trump regime.

Friday night saw Wall Street rally after falling for several sessions, but again it was tech stock earnings due to the AI bubble keeping everything afloat.