Asian equities edged higher on June 1, supported by sustained enthusiasm for artificial intelligence (AI) stocks, even as rising geopolitical tensions in the Middle East lifted oil prices and weighed on broader risk sentiment, Reuters reported.
Regional markets were underpinned by continued demand for semiconductor and AI-related companies, with Japan’s Nikkei rising 0.5% after last week’s record-setting rally. South Korea’s Kospi gained 1.3%, while Taiwan shares climbed further following a strong weekly performance. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2%.
Sentiment remained focused on the global AI theme, with major chipmakers continuing to drive gains. Nvidia CEO Jensen Huang is set to headline Computex in Taiwan, where investors expect further updates on the company’s latest AI developments and supply chain strategy.
However, gains were tempered by renewed geopolitical uncertainty. Oil prices climbed after stalled progress in Gulf peace negotiations and heightened tensions in the Middle East, including renewed conflict involving Israeli forces and Hezbollah in Lebanon. Brent crude rose 1.9% to US$92.89 a barrel, while US crude gained 2.4% to US$89.46.
US and European equity futures were mixed, with S&P 500 futures up 0.2% and Nasdaq futures advancing 0.4%, while European indices pointed to a softer open.
Markets also remained sensitive to inflation risks driven by higher energy costs, pushing US 10-year Treasury yields up three basis points to 4.47%. Investors are increasingly pricing in a near-even chance of another Federal Reserve rate hike by year-end.
