Global Markets React to AI Advances and Budget News

Asia-Pacific markets traded mixed on Tuesday, with some indices rising and others falling. The region's markets were influenced by a rebound in Wall Street's tech stocks, driven by Alphabet's shares and hopes of a Fed rate cut. Japan's Nikkei 225 index was flat, while South Korea's Kospi index rose 0.3%. Hong Kong's Hang Seng Index and the Hang Seng Tech index pared gains, while Australia's ASX/S&P 200 closed 0.14% higher. The mainland China's CSI 300 climbed 0.99%. India's Nifty 50 was flat in early trading. The positive sentiment was driven by optimism about Alphabet's standing in the AI race after it announced its upgraded AI model, Gemini 3, last week.

The article discusses the recent surge in the Nasdaq Composite, driven by Alphabet's 6.3% stock jump after announcing its new AI model Gemini 3. This has revived the AI trade, benefiting associated stocks like Broadcom and AMD. However, some investors are concerned that Alphabet's dominance in AI could hurt other stocks and lead to market volatility. Meanwhile, Amazon announced plans to spend up to $50 billion on AI infrastructure for US government customers, and OpenAI CEO Sam Altman revealed the company has prototypes for its AI device. The article also touches on the S&P 500's dividend yield and the potential for an 'everything bubble' in the market.

The article discusses the recent surge in Alphabet's stock price following the announcement of its new AI model, Gemini 3, which has revitalized the AI trade and lifted associated stocks such as Broadcom and AMD. The Nasdaq Composite rose 2.69% on the news, its best day in six months. However, some investors are concerned that Alphabet's dominance in AI could lead to volatility and negatively impact other stocks. The article also touches on other market news, including outflows from BlackRock's bitcoin ETF, Sandisk's inclusion in the S&P 500, and Trump's call with Xi Jinping on trade truce aspects.

The article discusses how investors are positioning themselves ahead of the UK's Autumn Budget, expected to be delivered by Finance Minister Rachel Reeves. Despite the prevailing pessimism, fund managers are identifying contrarian opportunities in UK housing, the British currency, and beaten-down cyclical equities. Some investors are betting on a potential cut in stamp duty, which could boost the housing market and stocks like Howden Joinery Group. Others are shorting the pound due to fiscal uncertainty, while some are investing in UK cyclical stocks, which are undervalued and poised to benefit from medium-term tailwinds.