Global stock markets rose on Thursday, benefiting from gains in technology sectors. This positive movement occurred despite concerns over the U.S. government shutdown, which began after midnight on the same day. Technology stocks surged amid expectations of increased demand for computer chips following a collaboration between South Korean tech companies and OpenAI.
Asian Stocks Climb Amid Tech Surge
The Korean Kospi index rose 2.7%, closing at 3,549.21. The increase came a day after Samsung Electronics and SK Hynix announced plans to provide OpenAI with memory chips for its Stargate data hubs. Shares of Samsung gained 3.5%, while SK Hynix’s stock jumped 9.9%. Taiwan’s TSMC also contributed to regional gains, with a 3% rise, leading the Taiex to advance by 1.5%.
European and American Markets React
- Germany’s DAX rose by 1.3%, reaching 24,435.24.
- France’s CAC 40 climbed 1.2% to 8,058.80.
- Britain’s FTSE 100 increased slightly less than 0.1%, closing at 9,452.81.
Meanwhile, Japan’s Nikkei 225 increased by 0.9% to 44,936.73, with technology stocks leading the upswing. Hong Kong’s Hang Seng index also saw a 1.6% rise, reaching 27,287.12. Australia’s S&P/ASX 200 climbed 1.1% to 8,945.90, driven by gains in gold mining stocks. In India, the BSE Sensex added 0.9%, supported by the Reserve Bank of India’s decision to maintain its benchmark interest rate.
U.S. Market Records and Economic Concerns
On the previous day, U.S. markets set new records, with the S&P 500 climbing 0.3% to 6,711.20. This surpassed its earlier all-time high. The Dow Jones Industrial Average closed at 46,441.10 after a 0.1% gain, while the Nasdaq composite rose 0.4% to 22,755.16. Despite the upward trend, concerns were raised as the private sector reportedly lost 32,000 jobs in September, with significant impacts in the Midwest.
Market analysts highlighted the delicate balance faced by the Federal Reserve. The hope is that a slower job market might prompt further interest rate cuts, avoiding a recession. However, the uncertainty of delayed economic reports may impact investor confidence.
Commodity Markets Activity
Amid fluctuating stocks, U.S. crude oil prices saw a slight decrease, dropping 11 cents to $61.67 per barrel. Meanwhile, Brent crude slipped by the same amount to $65.24. The U.S. dollar fell against the Japanese yen, while the euro rose against the dollar. The price of gold, often sought after in uncertain times, showed some volatility but ultimately rose by $3.20 to reach $3,900.70 per ounce, marking a significant increase over the past year.
As investors navigate these market movements, the impact of the government shutdown looms, with attention focused on upcoming economic reports.
