Asian stocks extend AI-fueled rally as Nasdaq hits record

A wave of enthusiasm around Meta's ↗ 1.02% AI agent Muse powered chip stocks to fresh highs on Tuesday, pushing the Nasdaq 100 to its first record since June and extending a rally that rippled across Asian markets on Wednesday.

Muse Mania Fuels Wall Street Surge

The Nasdaq Composite closed at an all-time high of 27,244.28 on Tuesday, while the Nasdaq 100 also notched a record close. The rally was driven by semiconductor and memory chip stocks, which have now recorded six consecutive sessions of gains.macon+5

At the center of the frenzy is Muse, Meta's AI agent introduced earlier this month, which helps users with tasks such as shopping and booking appointments. The app has topped U.S. download charts over the past two weeks, stoking optimism about the computing power needed to run such services. Amazon Amazon.com, Inc. ↘ 2.24% blocked Muse from its retail site after Meta declined a request to remove the bot, according to Bloomberg.profit.pakistantoday+2

Asian Markets Extend Winning Streak

The rally carried into Asian trading on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan rose for a sixth straight session, according to Reuters. South Korea's Kospi advanced, with Samsung Electronics and SK Hynix ↘ 3.12% both climbing more than 2%. Taiwan's benchmark gained and moved closer to a record high.reuters+1

Indonesian stocks rose 1.4% after Bank Indonesia held interest rates steady at its first meeting under new Governor Destry Damayanti, a widely expected decision that gave room for the rupiah to firm slightly. Japanese markets were closed for a holiday, though Nikkei futures traded well above Friday's cash close.businesstoday+2

Oil Decline and Diplomatic Hopes Add Tailwinds

Falling oil prices provided an additional boost. Brent crude slipped for a sixth straight session after sources told Reuters that Saudi Arabia had restarted operations at its East-West Pipeline. Markets were also watching diplomatic signals after President Donald Trump suggested at the United Nations that an agreement with Iran could come soon, though he warned he could "annihilate" Iran if talks fail.theedgemalaysia+1

"Markets are waiting for a clearer directional signal on whether the US-Iran situation produces a durable de-escalation," said Inki Cho, financial market strategist at Exness.theedgemalaysia