Asian markets rose on Friday, mirroring a record-breaking session on Wall Street following the Federal Reserve’s recent interest rate cut. Investors appeared optimistic, even as concerns over high tech valuations lingered after earnings disappointments from Oracle and Broadcom.Hong Kong’s HSI added 379 points or 1.48% to 25,909. Nikkei was trading up 429 points or 0.86%, to reach 429 points. Shanghai and Shenzhen also added 0.16% and 0.56%, respectively, at 10:50 AM IST. South Korean Kospi also gained 36 points to 4,146. The week is closing on a cautiously positive note, with eyes now on US jobs data, delayed until next week, which could offer guidance on the Fed’s plans for the year ahead. Data released on Thursday showed initial jobless claims jumped more than expected in the week ending December 6 the largest rise in over five years, reinforcing signs of a weakening labour market. Fed Chair Jerome Powell’s comments following Wednesday’s policy meeting were interpreted as less hawkish than feared, though the Fed’s statement hinted that a fourth consecutive rate cut in January might not be forthcoming. Analysts also highlighted that three dissenting votes among policymakers complicated predictions for future policy moves. In New York, however, investors focused on the prospect of further rate cuts next year, helping push the S&P 500 and Dow Jones Industrial Average to fresh highs. Despite the positive momentum, concerns persisted over the soaring valuations of tech stocks driven by artificial intelligence. Nvidia became the first company to hit a $5 trillion market value in October, prompting some analysts to caution that investments in AI might be overextended and returns could take time to materialise. These concerns were reinforced as Broadcom’s earnings fell short of expectations, with AI sales forecasts disappointing investors. Its shares dropped more than four per cent in after-hours trading. The day before, Oracle reported quarterly revenue below estimates and highlighted increased spending on data centres to support AI operations, sending its shares down 10.8% in New York.
