Asia markets rally on chip rebound and Japan pension hopes
Asia’s markets have rallied due to a rebound in the chip sector and hopes for Japan’s pension fund investments. The key factor is the fading risk of conflict with Iran.
Japan’s finance minister has called for measures to push pension funds into domestic assets, which could impact the yen. The yen has continued to gain after the minister’s comments.
The PBOC has set the USD/CNY reference rate at 6.7989, slightly higher than estimates. Japan’s producer prices have hit their fastest pace since 2023, keeping the BOJ on track to hike rates.
Sovereign wealth funds are pivoting to national priorities as AI spending reaches $404 billion, with the Nasdaq index leading major US indices higher.