AI trading is making a comeback, with Asian markets rising and then falling back. South Korean stocks closed up 0.15%, Brent crude rebounded 1.5%, and gold fell below $4300.

AI trading is making a comeback, with Asian markets rising and then falling back. South Korean stocks closed up 0.15%, Brent crude rebounded 1.5%, and gold fell below $4300.

Global stock markets continued their upward trend, driven by rising enthusiasm for artificial intelligence investment. Meanwhile, rising oil prices and the prospects for the US-China summit became the focus of market attention.

The strong market response to Meta's next-generation AI agent, Muse, has become the core driver of this rally. The US semiconductor stock index rose more than 4% on Monday, Meta's stock price surged 11%, and AMD's market capitalization surpassed one trillion US dollars for the first time. The MSCI World Equity Index rose for the fourth consecutive day, hitting a two-week high, while Asian stocks rose 0.6% overall, moving toward a fifth consecutive day of gains.

On Tuesday, the Euro Stoxx 50 index opened 0.17% higher, and the German DAX index rose 0.13%. Alibaba's announcement of what it claims to be China's most powerful AI chip further boosted sentiment in the technology sector. The Taiwan Weighted Index rose as much as 1.8% intraday, hitting a record high, before paring gains. Japanese and South Korean stocks opened sharply higher, but gains later fell to less than 1%. Nasdaq 100 futures rose slightly by 0.1%. However, Brent crude oil prices rebounded 1.5%, approaching $102 per barrel, providing some restraint on overall risk appetite.

"Overall, the market is actually quite strong," said Shaun Cochran, head of research at CLSA, in an interview with Bloomberg Television. "What we're seeing right now is market optimism about the AI revolution, which is driving confidence in capital spending. This is largely a capital expenditure-driven economy, and that's what sustains risk appetite."

The Euro Stoxx 50 index opened 0.17% higher, the German DAX index rose 0.13%, the UK FTSE 100 index gained 0.21%, and the French CAC 40 index climbed 0.22%.South Korea's KOSPI index closed up 0.15% at 7017.91 points. Asian stock markets as a whole rose 0.6%.Nasdaq 100 futures rose slightly by 0.1%.The dollar rose for the third consecutive trading day, gaining 0.3% to 157.75 against the yen.The German 10-year yield fell 6 basis points to 3.46%.The UK 10-year yield fell 8 basis points to 5.21%.Brent crude oil prices rebounded 1.5%, approaching $102 per barrel.Spot gold fell below $4,300 per ounce, down nearly 1% on the day.Bitcoin fell 1.7% to $85,496.85.

Meta Muse ignites the AI ecosystem

Muse was a direct catalyst for this market surge. This product allows users to create customized AI agents and dispatch them across the internet to perform digital tasks. Compared to the older Meta AI, Muse's core difference lies in its ability to respond based on user social content on platforms like Facebook Marketplace and Instagram, while also supporting integration with third-party services such as Gmail, Apple and Google Calendar, and OpenTable.

"The most significant catalyst was the launch of Meta's new AI chatbot," said Kyle Rodda, senior analyst at Capital.com. "Strong demand for the product has reignited market optimism about the growth prospects of so-called 'AI trading.' Strong AI demand signals should boost sentiment across the entire AI ecosystem, especially the chip sector."

Media reports indicate that chip stocks such as MediaTek and Samsung Electronics, suppliers of TSMC, have outperformed the market.

AI narrative returns to the main storyline

This renewed enthusiasm for AI comes against a backdrop of previously dampened market confidence. Previously, leading US AI companies had called for a slowdown in technological development and issued a series of increasingly serious warnings, stating that the rapid pace of AI evolution poses a threat to national security and the global economy, which had raised questions about the sustainability of the sector's growth.

Clive Maguchu, senior strategist at State Street Investment Management, said, "Over the past year, we've seen investors repeatedly question the strength and sustainability of this AI rally. But every now and then, new information emerges confirming that demand remains strong."

Alibaba launched a new generation of AI chips on Tuesday, while Tencent released its most powerful image generation model to date. Shares of both companies rose in the Hong Kong stock market, further reinforcing the market's judgment that the AI investment cycle is still on an upward trajectory.

The South Korean won outperformed other emerging market currencies in Asia on Tuesday, rising 1%; the US dollar index saw limited movement overall; and Bitcoin retreated after surging more than 7% on Monday, breaking through $87,000.

Volatility in the energy market is also affecting investor sentiment. Brent crude rebounded strongly by 1.5% after four consecutive days of decline, approaching $102 per barrel. The market is weighing the risks of Middle East supply against the forces of diplomatic maneuvering – with Trump scheduled to attend the UN General Assembly in New York on Tuesday and possibly meet with Iranian President Masoud Pezeshkian on the sidelines, traders are closely watching whether diplomatic efforts can provide support for a continued pullback in oil prices.

"Overall, the market is actually quite strong," said Shaun Cochran, head of research at CLSA, in an interview with Bloomberg Television. "What we're seeing right now is market optimism about the AI revolution, which is driving confidence in capital spending. This is largely a capital expenditure-driven economy, and that's what sustains risk appetite."

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