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Asian stock markets : https://tmsnrt.rs/2zpUAr4

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Chip optimism underpins tech stocks, Japan on holiday

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Gold hits a fresh high above $3,750 an ounce

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Dollar, bonds steady before Powell comments, PMIs

By Wayne Cole

SYDNEY, Sept 23 (Reuters) - Asian share markets looked

to build on recent hefty gains on Tuesday as optimism around all

things AI sucked money into the tech sector, while wagers on

several more U.S. interest rate cuts kept gold on a hot streak.

Wall Street had been led to another record as Nvidia

announced it would invest up to $100 billion in OpenAI with the

first data centre gear to be delivered in the second half of

2026.

"With U.S. tech/AI currently in red-hot form, we'd need to

see something leftfield to derail the upbeat flows that are the

driving force of Oracle, Apple, Nvidia, Tesla, and some of the

U.S. hardware plays," said Chris Weston, head of research at

broker Pepperstone.

The seemingly inexorable rise in tech was attracting money

from momentum funds and option players, becoming almost self

fulfilling. Weston also noted investors were hedging their

exposure to equities by buying gold, another asset with strong

momentum right now.

The metal hit a fresh record at $3,755.47 per ounce,

to nearly 9% higher for the month so far.

The rush into tech has been a boon for chip sectors in many

Asian markets, with South Korean stocks up 0.2%, having

surged almost 9% this month.

Japan's Nikkei was closed for a holiday but has

climbed 6.5% so far in September, while Taiwan has risen

almost 7%. MSCI's broadest index of Asia-Pacific shares outside

Japan rose 0.3%, to be 5.5% higher on the month.

Chinese blue chips nudged up 0.1%.

European equity markets have tended to lag in the tech rush

and EUROSTOXX 50 futures were up 0.1% on Tuesday. FTSE

futures also added 0.1%, while DAX futures edged

up 0.2%.

S&P 500 futures and Nasdaq futures were both

little changed having hit new peaks overnight.

MIXED MESSAGING FROM FED

Equities globally have been underpinned by expectations of a

series of further rate cuts from the Federal Reserve following

last week's easing.

Futures imply around a 90% chance of a further quarter-point

rate cut in October, and a 75% probability of an easing in

December as well.

Markets remain doggedly dovish despite mixed messaging from

the Fed itself. Speaking on Monday, new Fed Governor Stephen

Miran, hand picked by President Donald trump, argued for sharply

lower rates, but three of his colleagues said the central bank

needed to remain cautious about inflation.

Fed Chair Jerome Powell will get his own chance to weigh in

later on Tuesday when he speaks on the economic outlook and

takes questions on policy.

A host of PMI surveys on manufacturing out on Tuesday will

provide an update on how industry globally is faring in the face

of U.S. tariffs.

Treasuries have also been underpinned by the outlook for

lower short-term rates, though the market is bracing for a flood

of government and corporate debt to absorb this week.

The Treasury sale kicks off with $69 billion in two-year

notes later Tuesday, followed by $70 billion in five-year notes

and $44 billion in seven-year paper.

The clock is also ticking on a possible U.S. government

shutdown ahead of a September 30 funding deadline.

In currency markets, the dollar continued its recent see saw

pattern, easing overnight after three sessions of gains.

The euro was steady at $1.1809, after bouncing

from a $1.1726 low on Monday, while the dollar had faded to

147.68 yen from a top around 148.37.

Sweden's crown held at 9.3497 per dollar as markets

waited to see if the country's central bank would cut rates at a

meeting later in the day. Futures imply around a one-in-three

chance of an easing.

In commodity markets, oil prices were restrained as

concerns of an oversupply outweighed geopolitical tensions in

Russia and the Middle East.

Brent eased 0.2 to $66.46 a barrel, while U.S. crude

dipped 0.1% to $62.21 per barrel.