Asian Stocks Set for Gains, Yen Passes Key Level: Markets Wrap

(Bloomberg) — US equity futures edged higher, with the tech-heavy Nasdaq 100 gaining after strong earnings from Alibaba Group Holding Ltd. fueled optimism over artificial intelligence.

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Contracts on the Nasdaq 100 added about 0.3% and US-listed Chinese stocks rose in premarket trading. Still, the gains were capped as digital payments firm Block Inc., software firm Akamai Technologies Inc., and EV maker Rivian Automotive Inc. declined in premarket trading after issuing weak guidance. Futures on the S&P 500 were steady.

US equities are lagging their European and Asian counterparts so far this year, and Bank of America Corp. strategist Michael Hartnett reiterated a preference for global stocks to US peers, seeing markets such as Germany, China, Japan and South Korea as more attractive at a time when business activity is improving. US companies’ profit outlooks for 2025 have also been relatively subdued, strategists at JPMorgan Chase & Co. noted.

In Europe, the Stoxx 600 Index added 0.6%, heading for its ninth consecutive weekly gain on the back of resilient profits and optimism over peace talks in Ukraine. Earlier, Chinese technology stocks surged to their highest level since 2022, lifted by a 14% jump in Alibaba.

European stocks meanwhile enjoyed about $4 billion in inflows in the week through Feb. 19, the most since February 2022, according to a Bank of America Corp. note that cited EPFR Global data.

Traders are now looking ahead to Germany’s weekend election and hoping the results will allow the Conservative front-runner to forge a coalition that can push through economic reforms and loosen borrowing rules. If Europe’s biggest economy can spend more on defense, it may help calm a market rattled by Washington’s efforts to boost ties with Russia, they said.

Meanwhile, the euro weakened 0.3% versus the dollar. Purchasing manager data showed business activity in the region hardly grew in February, reinforcing fears that the bloc remains mired in stagnation. The dollar rose as investors awaited US PMIs, with economists expecting the composite reading at 53.2, slightly below the January reading.

Gold headed for an eighth consecutive weekly advance as the geopolitical and trade tensions fueled demand for the precious metal.