US tech stocks slump on fear AI firms may be overvalued. That’s because a Chinese AI firm looks to have caught up, at a fraction of the cost. Also, the Bank of Japan hikes, while the Monetary Authority of Singapore eases.
In our bonus deep dive interview, ANZ’s Head of FX Research Mahjabeen Zaman has reviewed how well currency markets coped with Donald Trump’s first week as US President.
5 things to know in 5 minutes:
US tech stocks slumped sharply this morning as investors questioned the high valuations of Artificial Intelligence stocks. That’s after news China’s DeepSeek appeared to generate similar performance to the American AI stocks, but at a fraction of the price. ANZ Economist Bansi Madhavani said it’s too early tell if AI stocks are overvalued, but more volatility is likely.
The Bank of Japan hiked its key rate by 25 basis points to 0.5% on Friday. ANZ FX Analyst Felix Ryan says the BoJ is more confident inflation is embedded.
Felix says the Bank of Japan’s decision led to a rise Japanese bond yields and a slight firming of the yen vs the US dollar.
The main data release this week in Australia will be fourth quarter inflation figures. says ANZ Group Chief Economist Richard Yetsenga.
Singapore’s central bank eased monetary policy on Friday for the first time in four years. ANZ’s Head of Asia Research Khoon Goh says the Monetary Authority of Singapore (MAS) now sees growth slowing to 1-3% this year from 4% last year.
Cheers,
Bernard
PS: Catch you tomorrow as we look ahead to rates decisions from the Fed and ECB later this week.
