Asian Stocks Rise on AI Hype and US-China Trade Optimism

Asian stock markets rose following positive cues from Wall Street and a temporary tariff truce between the U.S. and China, which included China agreeing to buy more U.S. energy and lifting export controls on rare earths. The MSCI Asia-Pacific ex-Japan index neared its highest level since early 2021, driven largely by optimism around artificial intelligence (AI) spending by major tech firms, although investors await earnings reports to confirm if this spending will translate into real-world profits. The U.S. dollar remains strong near a three-month high amid divergent views from Federal Reserve officials on interest rate cuts, adding uncertainty to market expectations. Meanwhile, oil prices rose after OPEC+ delayed planned production hikes, while gold prices slipped from recent record highs. Despite the excitement around AI and trade optimism, investors remain cautious, recognizing that sustained market gains depend on firm economic fundamentals and earnings results.