Key Points
- Nasdaq 100 gained 0.8% and S&P 500 rose 0.6% as US data surprised to the upside.
- WTI jumped 4.6% above $65 while Brent closed above $70 for the first time in over two weeks.
Asian equities advanced after a strong rebound in US technology stocks, and robust US economic data lifted Wall Street.
The Nasdaq 100 climbed 0.8%, while the S&P 500 gained 0.6%, helping stabilise sentiment after recent volatility tied to artificial intelligence disruption fears.
The MSCI Asia Pacific Index rose for a second session. Shares in Australia and Japan rallied, while South Korea’s benchmark climbed to a record high.
Trading remained muted in parts of the region, with mainland China, Hong Kong, and Taiwan closed for the Lunar New Year holiday.
The rebound in US tech signalled that traders are reassessing earlier concerns around AI-related earnings disruption. Several institutional traders have begun selectively re-entering positions following the recent pullback.
Strong US Data Supports Risk Appetite
Investor sentiment also drew support from solid US economic releases. Industrial production posted its biggest increase in January, business equipment orders in December rose more than projected, and housing starts reached a five-month high.
These data points suggest that growth momentum remains intact at the start of 2026.
However, Treasury markets reflected some caution. A $16 billion sale of 20-year bonds drew weak demand, and Treasuries slipped during the New York session. The dollar index gained 0.5% on Wednesday, though it edged lower against most Group-of-10 peers in Asian trade.
Technical Analysis
The NAS100 is trading around 24,900, holding marginal gains but remaining within a broader consolidation range after failing to reclaim the late-January highs near 26,300.
The daily structure shows choppy price action, with lower highs forming since the recent peak, suggesting upside momentum has cooled.
Price is currently hovering just below the 20-day MA (25,235) and 30-day MA (25,326), while the shorter-term 5-day (24,776) and 10-day (24,934) averages are flattening.
This alignment reflects a neutral-to-soft bias, as the index struggles to build sustained upside follow-through. Immediate resistance sits in the 25,200–25,300 zone, where multiple moving averages converge, while near-term support is seen around 24,350, followed by the November swing low region near 23,850.
A decisive break above 25,300 would signal renewed bullish momentum and reopen the path toward 26,000 and beyond. However, failure to reclaim that level may keep the index range-bound, with downside risk increasing if 24,350 gives way.
Cautious Outlook
Strong US economic data support risk assets for now, but rising yields and mixed bond demand signal that markets remain alert to inflation and policy risks. The next directional move will likely hinge on whether growth resilience continues without reigniting inflation pressures.
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