The Japan Times - Tech stocks fuel Asian and European gains, Wall Street wobbles

While both the S&P 500 and Nasdaq Composite pushed higher from record closes at the opening bell, those gains faded and Wall Street was mostly lower in late morning trading.

The trading day started off positively in Asia, with tech stocks surging as South Korea's biggest chip firms agreed to supply chips and other equipment to OpenAI's Stargate project for AI infrastructure.

South Korea's Kospi index climbed 2.7 percent to a record high, thanks to Samsung and SK hynix shares soaring to one-year highs after the firms signed a preliminary deal with the ChatGPT developer OpenAI.

Tokyo rose, as did Hong Kong's tech-heavy Hang Seng index. Shanghai was closed for a week-long holiday.

Taipei's stock index jumped 1.5 percent as chip titan and market heavyweight TSMC piled on three percent.

The positive trend continued into European trading, with Europe's tech companies also rising. Shares in ASML gained 4.5 percent, and STMicroelectronics and Schneider Electric adding more than two percent.

But shares in US tech firms didn't fare as well, with leading AI chipmaker Nvidia up 1.1 percent.

Tech companies have been at the forefront of a surge across markets this year as investors pile into all things linked to artificial intelligence, with hundreds of billions being pumped into the sector.

OpenAI is now worth $500 billion, based on a recent private sale of shares, making it the world's most valuable startup, according to financial media reports Thursday.

Both Paris and Frankfurt stock markets finished the day up more than one percent, with automakers also rallying. London dipped.

The start of the closure of some US departments owing to a funding standoff between lawmakers in Washington did not phase investors, who were more focused on the outlook for more Federal Reserve rate cuts. Figures from payrolls firm ADP on Wednesday showed the US private sector shed jobs in September, despite expectations of employment growth.

"The data emboldens calls for the Fed to ease (rates) in the months ahead," said Joshua Mahony, chief market analyst at Scope Markets.

The data was the latest in a string of below-par reports indicating the labour market in the world's top economy continues to slow.

Observers said the reading had a little more significance owing to expectations that crucial non-farm payrolls statistics will not be released as usual on Friday owing to the shutdown.

The lack of data could also affect the Fed's deliberations, warned Trade Nation analyst David Morrison.

"It could also mean that the central bank holds off from cutting this month if FOMC members feel they have a lack of clarity, given the missing data releases," he said.

Data shows investors currently believe there is nearly a 99 percent chance that the Fed will cut rates at its meeting later this month, and a nearly 87 percent chance at the following meeting in December.

- Key figures at around 1530 GMT -

New York - Dow: DOWN 0.2 percent at 46,338.64 points

New York - S&P 500: DOWN 0.2 percent at 6,699.71

New York - Nasdaq Composite: UP less than 0.1 percent at 22,774.99

London - FTSE 100: DOWN 0.2 percent at 9,427.73 (close)

Paris - CAC 40: UP 1.1 percent at 8,056.63 (close)

Frankfurt - DAX: UP 1.3 percent at 24,422.56 (close)

Tokyo - Nikkei 225: UP 0.9 percent at 44,936.73 (close)

Hong Kong - Hang Seng Index: UP 1.6 percent at 27,287.12 (close)

Shanghai - Composite: Closed for a holiday

Euro/dollar: DOWN at $1.1699 from $1.1728 on Wednesday

Pound/dollar: DOWN at $1.3415 from $1.3476

Dollar/yen: UP at 147.38 yen from 147.14 yen

Euro/pound: UP at 87.20 pence from 87.04 pence

West Texas Intermediate: DOWN 1.2 percent at $61.06 per barrel

Brent North Sea Crude: DOWN 1.3 percent at $64.56 per barrel

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T.Shimizu--JT