Asian stocks steady as AI rebound offsets oil above $107 and rising yields before Fed decision

  • Asian stocks steadied as technology shares recovered from Monday’s selloff.
  • Oil prices exceeded $107 a barrel while S&P 500 Futures fell to 7,691.50.
  • The Federal Reserve decision follows three July dissenters favoring a rate hike.

Asian stocks steadied Tuesday as a rebound in artificial-intelligence shares helped offset concerns from an earlier technology selloff, oil prices above $107 a barrel and rising bond yields. Nasdaq 100 Futures edged higher, while S&P 500 Futures slipped to 7,691.50. Investors reassessed calls from leading AI developers for slower development and stronger safeguards, including independent evaluations, amid debate about effects on corporate spending and earnings across the supply chain. Treasuries weakened after the U.S. government repurchased fewer 10- to 20-year securities than expected. Elevated government bond yields, driven by fiscal deficits, heavy issuance and financing needs tied to AI investment, raise borrowing costs and reduce the present value of future corporate earnings. South Korea’s KOSPI rose 0.19% and Japan’s Nikkei 225 gained 0.8%, while Hong Kong’s Hang Seng fell 0.5% to 24,791. Semiconductor shares rebounded, led by Kioxia, SK Hynix and Samsung Electronics. OCBC remains moderately positive on equities, with its long-term AI-driven bull-market view intact. Mainland Chinese markets edged higher, although August data showed resilient industrial activity alongside weak consumer spending and investment. Markets priced more than a 90% chance of a Federal Reserve rate hike Wednesday, with Bank of England and Bank of Japan decisions due later in the week.

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