On February 19, driven by the rebound in technology stocks and positive U.S. economic data, U.S. stocks performed well overnight, leading to a general rise in Asian stock markets. The tense geopolitical situation pushed up gold and crude oil prices, which stabilized after recording the largest single-day increase since October of last year.
The Australian and Japanese stock markets strengthened, while the South Korean benchmark index reached a historic high. In the previous trading day, major U.S. stock indices on Wall Street closed higher, with the S&amp;P 500 index rising by 0.6% and the tech-heavy Nasdaq 100 index increasing by 0.8%.
The strong rebound in the technology sector indicates that market concerns about the disruptive impact of artificial intelligence are gradually dissipating, and investors are entering the market at lower prices to capture opportunities in stocks with reasonable valuations. Paul Stanley, managing partner at Granite Bay Wealth Management, stated that the sell-off in software stocks may have been &#34;excessive,&#34; as it largely reflects an instinctive reaction from investors trying to determine which companies in the AI field will succeed and which will fail. He said:
<blockquote>
&#34;While the prospects for artificial intelligence are very broad, investors should not assume that all companies will succeed in the AI space.&#34;
</blockquote>
In the currency market, the U.S. dollar rebounded from recent lows, while the yen remained under pressure. The latest released minutes from the Federal Reserve meeting show significant divergence in policymakers' views on the future path of interest rates. The minutes suggest that even with the new chairman taking office in May, pushing for rate cuts may face considerable resistance.
Peter Dragicevic, currency strategist at Corpay for the Asia-Pacific region, stated:
<blockquote>
&#34;This indicates that the urgency for another rate cut is not high, at least not before the current chairman (Jerome Powell) ends his term in May.&#34;
</blockquote>
Core market movements are as follows:
<blockquote>
The Nikkei 225 index opened up 0.57%.
The South Korea Composite Index rose 3%, reaching a historic high.
Samsung Electronics rose over 4%, with reports that it is negotiating a price of $700 for HBM4.
The yield on 10-year Japanese government bonds rose by 1 basis point to 2.145%.
The yen to U.S. dollar exchange rate remained stable at 154.73 yen to 1 dollar.
Spot gold fell by 0.2% to $4,967.93 per ounce; West Texas Intermediate crude oil fell by 0.1% to $65.12 per barrel.
</blockquote>
The South Korea Composite Index rose 3%, reaching a historic high. Samsung Electronics rose over 4%, with reports that it is negotiating a price of $700 for HBM4. <img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ef5936d5-b521-43ee-b71f-0c3770248962.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ef5936d5-b521-43ee-b71f-0c3770248962.png"/>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0dc4e2e6-74be-40bb-8384-6c381212966e.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0dc4e2e6-74be-40bb-8384-6c381212966e.png"/>
Affected by the overnight decline in U.S. Treasury bonds, Japanese government bond futures continued to weaken. The traditional linkage effect between the two countries' bonds makes it difficult for the Japanese market to shake off external pressure
Investors are closely watching the 20-year government bond auction scheduled for later today, with a scale of approximately 800 billion yen. Citigroup strategist Tomohisa Fujiki believes that the current upside potential for ultra-long-term government bonds is limited, and demand may only be a short-term phenomenon, expected to gradually fade by the end of March.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/8bdf29d7-fd91-4e6e-a307-4172761a06ff.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/8bdf29d7-fd91-4e6e-a307-4172761a06ff.png"/>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6088f38b-5a77-4a7f-a68c-f092af81d132.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6088f38b-5a77-4a7f-a68c-f092af81d132.png"/>
The continued strength of the US dollar puts pressure on the yen exchange rate. During Thursday's Asian session, the USD/JPY stabilized around 154.6, retreating from last week's level of 152 following Prime Minister Kishi Sanae's overwhelming election victory.
On the news front, the Trump administration announced an investment project worth $36 billion, as the first landing project of Japan's previously promised $550 billion investment plan in the US.
For a long time, the yen has remained weak due to domestic low interest rates and concerns over fiscal deficits. However, recent market expectations for Japan's economic growth prospects have provided rare support for the yen.
Chris Turner, Global Head of Research at ING, stated:
<blockquote>
&#34;Japan's direct investment in the US will be a key factor to watch this year, complicating the USD/JPY dynamics. The issue facing the foreign exchange market this year is whether this investment can support dollar inflows or if Japan will use its foreign exchange reserves to guarantee new dollar loans, thereby avoiding pressure on the yen. Tokyo seems to lean towards the latter.&#34;
</blockquote>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/767abbc3-05b0-470d-9ce9-36d594ad10e6.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/767abbc3-05b0-470d-9ce9-36d594ad10e6.png"/>
Due to the escalating risks of conflict between the US and Iran, the appeal of gold as a safe-haven asset has increased, with gold prices slightly rising in early Asian trading. Spot gold rose by 0.2% at one point, reaching $4,986 per ounce.
The analyst team at InTouch Capital Markets noted in their comments that market concerns over a potential war between the US and Iran have resurfaced. The team cited media reports indicating that, due to the bleak prospects for reaching an agreement, the Trump administration may be more inclined to engage in conflict with Iran, with the highest likelihood of joint action with Israel. <img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/37b70804-815b-47c1-8eff-a92cdf7fa6bb.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/37b70804-815b-47c1-8eff-a92cdf7fa6bb.png"/>
As geopolitical tensions rise, oil prices stabilize after a surge. According to CCTV News, informed sources revealed that the US military is prepared for &#34;military strikes against Iran as early as this weekend,&#34; but President Trump has not yet made a final decision. Sources stated that the White House has been informed that after a significant increase in US troops to the Middle East in recent days, the military is ready to launch an attack this weekend. Trump has privately debated the pros and cons of military action and consulted advisors and allies on the best course of action—it's still unclear whether he will make a decision before the weekend
The U.S. military intervention in Iran may occur earlier than the market expects, reigniting supply concerns. Data from Wednesday's close showed WTI crude oil rising 4.6% to above $65, while Brent crude returned to the $70 mark, reaching a new high in over two weeks. Analysts suggest that U.S. military actions could last for several weeks, while Israel is actively promoting plans to overthrow the Iranian regime. The sharp escalation of geopolitical risks is becoming the dominant factor for short-term oil prices.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a6c963ca-75ae-4832-8638-a226731faadc.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a6c963ca-75ae-4832-8638-a226731faadc.png"/>

SSNGY

SMSN

- On February 19, Asian markets rose, buoyed by a tech stock rebound and positive US economic data.  
- Concerns over geopolitical tensions have increased the appeal of gold, with oil prices stabilizing after recent significant gains.  
- The US military's readiness for potential action against Iran has contributed to rising supply concerns in the oil market, driving prices higher.

Wallstreetcn

Samsung Electronics 

Samsung Electronics Co., Ltd. Sponsored GDR

Pro Ultrshrt Yen

Currencyshares JPY Trust

Concerns about technology stocks have eased, and the stock markets in Japan and South Korea opened higher and continued to rise, with Samsung Electronics up 5%. The yen weakened to 154, and rising geopolitical tensions pushed up gold and oil prices