Global Stocks Rally on Weak US Jobs Data, AI Partnerships Boost Tech Sector

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Equities surged on Thursday as weaker-than-expected US private sector jobs data fueled expectations of more Federal Reserve rate cuts, overshadowing concerns about a partial government shutdown in Washington.

Technology shares led the gains globally, buoyed by news of strategic partnerships between South Korea’s leading chipmakers and US-based OpenAI, further extending the artificial intelligence-driven rally that has lifted markets to record highs this year.

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US Jobs Data Raises Rate-Cut Hopes

Fresh figures from payrolls firm ADP showed US companies shed 32,000 jobs in September, confounding analyst forecasts for a gain of 50,000.

The reading reinforced signs that the world’s largest economy is experiencing a softening labour market, adding pressure on the Federal Reserve to deliver two more interest rate cuts before year-end.

“The market is going to have to focus on independent private sources to get a sense of what’s going on,” said Brij Khurana of Wellington Management, noting that Friday’s crucial non-farm payrolls report may not be released due to the government shutdown.

Economists at Bank of America warned of “downside risks” for labour demand, citing ongoing job losses in goods-producing industries linked to tariff uncertainty, as well as continued layoffs in professional and business services amid faster AI adoption.

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Tech Surge Leads Asian Rally

Wall Street’s overnight gains, which saw the S&P 500 and Nasdaq hit fresh records, carried into Asia.

• Tokyo’s Nikkei 225 rose 0.9% to close at 44,936.73.

• Hong Kong’s Hang Seng jumped 1.9% to 27,363.39 as traders returned from a midweek holiday.

• Seoul’s Kospi soared 2.7% to a record high, with SK hynix climbing as much as 12% and Samsung Electronics up 5%.

• Taipei’s TAIEX gained 1.5%, with chip giant TSMC advancing 3%.

The gains followed confirmation that Samsung and SK hynix signed preliminary agreements to supply chips and equipment for OpenAI’s Stargate project, during CEO Sam Altman’s visit to Seoul.

Other regional tech giants also rose, with Alibaba, Tencent, and JD.com gaining between 2% and 4% in Hong Kong trading.

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European Markets Open Higher

Momentum carried into Europe, where London, Paris, and Frankfurt opened with solid gains.

• FTSE 100 rose 0.2% to 9,465.92.

• Euro/dollar edged up to $1.1737.

• Oil markets saw modest increases, with WTI at $61.89 and Brent crude at $65.45 per barrel.

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Market Outlook

Investors remain optimistic that monetary easing combined with accelerating AI-driven innovation will support global equity markets. However, analysts caution that the US government shutdown and uncertainty around future labour trends could inject volatility in the coming weeks.