Market Overview - Asian equities experienced a significant increase, driven by optimism for potential interest rate cuts following job losses in the US private sector [1][2] - The tech sector led the rally, particularly due to a deal between South Korea's major chip firms and OpenAI, which contributed to an AI-driven market surge [1][6] Employment Data - ADP reported that US companies shed 32,000 jobs last month, contrary to expectations of a gain of over 50,000, indicating a slowdown in the labor market [2][3] - This data is expected to influence the Federal Reserve's decision to implement two more rate cuts by the end of the year [3] Sector Performance - The professional and business services sector is anticipated to see continued layoffs, particularly due to the rapid adoption of AI technologies [4][5] - Economists noted that goods-producing sectors have been losing jobs since May, partly due to tariff uncertainties [4] Regional Market Reactions - Major Asian markets, including Tokyo, Sydney, and Hong Kong, saw gains, with Seoul and Taipei leading the charge due to the chip firms' performance [6][7] - SK hynix's stock surged approximately 12% and Samsung's by around 5%, contributing to a record high for the Kospi index [7] Tech Sector Investment - The tech industry has been a focal point for investment, with significant capital flowing into AI-related companies, amounting to hundreds of billions [8]
Asian Markets Surge On US Rate Hopes, Tech Fired By Chip Deal
International Business Times·2025-10-02 03:06