Asia open update

Stephen Innes SPI Asset Management

Despite a decent rally on Wall Street, Asian stocks are poised for an early decline on Friday as traders increasingly speculate that the Bank of Japan (BOJ) is nearing the end of its negative interest rate policy ( NIRP). With the Yem surging, futures contracts in Japan have predictably declined, as exporters recoil. And shares across the regions are slipping as investors exhibit a cautious stance ahead of the US payroll data.

Traders have ears and eyes trained for any clarification from BOJ Governor Kazuo Ueda after his recent remarks suggested a more challenging environment, fueling speculation of a possible end of NIRP.

Despite a 1% slip the previous day after unveiling new AI processors to compete with Nvidia, AMD shares experienced a strong bounce, jumping nearly 10% by the close. This positive momentum in chip stocks supported US futures, contributing to efforts to put a floor under the market. The semiconductor industry has been marked by intense competition and technological advancements, with companies like AMD making strategic moves to capture market share in the AI processor space. This sector's volatility and rapid developments often impact investor sentiment and market dynamics.

Author

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

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