Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
South Korea, US Discuss Warship Building Cooperation 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
Fed Unveils Stablecoin Rules Under GENIUS Act 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
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Asian financial markets climbed on Wednesday, led by strong gains in Korean semiconductor stocks as investors doubled down on artificial intelligence (AI) plays. Growing optimism around AI-driven demand and a global memory chip shortage pushed regional equities higher, while currency traders kept a close eye on the Japanese yen and Bank of Japan (BOJ) policy signals.
MSCI’s broad Asia-Pacific index outside Japan rose 1% in early trading. Japan’s Nikkei 225 hit a fresh record high, gaining 1.1% to 57,956.92 after touching an intraday peak of 58,047.89. The broader Topix edged up 0.07% to 3,818.73. South Korea’s KOSPI surged nearly 1.7%, breaking above the 6,000 level for the first time and extending its year-to-date gain to 44%.
Korean chipmakers Samsung Electronics and SK Hynix have seen their share prices double since October, fueled by a global memory chip shortage and accelerating AI investment across the supply chain. Investors are also awaiting Nvidia’s fourth-quarter earnings, expected after the U.S. market close, for further insight into AI sector momentum.
Elsewhere, Hong Kong’s Hang Seng Index added 0.36%, while China’s CSI300 rose 0.3%. Australia’s S&P/ASX 200 climbed as much as 1.1% to a record high, despite rising consumer prices that increased the risk of additional interest rate hikes.
The Japanese yen strengthened 0.12% to 155.7 per dollar after a sharp decline the previous day. Reports that Prime Minister Sanae Takaichi expressed caution about further rate hikes to BOJ Governor Kazuo Ueda introduced uncertainty around monetary policy. A recent Reuters poll shows most economists expect the BOJ to raise rates to 1% by June, with markets pricing in a 50% chance of an April hike.
Meanwhile, the U.S. dollar index dipped slightly to 97.84, while Treasury yields edged higher. Federal Reserve officials signaled a wait-and-see approach on inflation, with ANZ forecasting 75 basis points of rate cuts this year starting in June.
Oil prices advanced, with U.S. crude at $66.12 and Brent at $71.30. Spot gold held steady, reflecting cautious optimism across global financial markets as investors balance AI enthusiasm with monetary policy risks.
