Tech Rally Powers Asian Markets as Oil Prices Soar
The tech rally continues to drive regional indices in Asia higher, with South Korea's KOSPI up by a significant 4% and Japan's Nikkei 225 gaining 2%. The catalyst behind this surge is growing excitement about OpenAI's next-generation model, which traders believe will boost demand for AI infrastructure. This, in turn, is expected to translate into increased sales for chipmakers like SK Hynix and Samsung.
Oil prices are also on the rise due to ongoing tensions between the US and Iran. The Strait of Hormuz remains a focal point, with both Brent and WTI crude oil futures nearing the $100/barrel threshold. In FX markets, USD/JPY is an interesting pair to watch as it approaches technical daily support at ¥155.54.
The week ahead will be dominated by two major economic events: the ECB rate decision on Thursday and the US CPI data release. The European Central Bank is widely expected to raise its key benchmark rates by 25 bps, marking the second increase this year. However, the question remains whether President Lagarde will signal another potential hike down the road.