Global Markets Rise Amid U.S. Rate Cut Hopes; SoftBank Shares Decline on AI Competition Concerns

Global stock markets advanced on Tuesday, following a rally in U.S. equities driven by expectations of a potential Federal Reserve interest rate cut in December. In Asia, Tokyo's Nikkei 225 edged up 0.1% to 48,659.52, despite a significant decline in SoftBank Group's shares. The technology conglomerate's stock fell 10.3% amid concerns that Google's new Gemini AI model could intensify competition for OpenAI, a key investment in SoftBank's portfolio.

In other Asian markets, South Korea's Kospi gained 0.3% to 3,857.78, Taiwan's Taiex rose 1.5%, Hong Kong's Hang Seng climbed 0.7% to 25,894.55, and China's Shanghai Composite index increased by 0.9% to 3,870.02. European markets showed mixed results; Germany's DAX edged 0.1% lower to 23,216.76, while France's CAC 40 and Britain's FTSE 100 each added 0.1%, reaching 7,965.77 and 9,542.55, respectively.

The positive momentum in global markets was influenced by Wall Street's performance on Monday, where the S&P 500 climbed 1.5%, the Dow Jones Industrial Average rose 0.4%, and the Nasdaq composite jumped 2.7%. These gains were fueled by optimism that the Federal Reserve may cut its main interest rate at its next meeting in December, a move that could stimulate the economy and boost investment prices.

Alphabet, the parent company of Google, saw its shares rally 6.3% following the launch of its Gemini AI model, contributing significantly to the S&P 500's rise. Nvidia also benefited from the AI enthusiasm, with its stock increasing by 2.1%.

Investors are now awaiting key U.S. economic data, including inflation figures, which could influence the Federal Reserve's upcoming decisions on interest rates. The market is currently pricing in a nearly 85% probability that the Fed will implement a rate cut next month.

In other developments, U.S. benchmark crude oil lost 47 cents to $58.37 per barrel, while Brent crude shed 49 cents to $62.23 per barrel. The dollar fell to 156.30 Japanese yen from 156.91 yen, and the euro rose to $1.1534 from $1.1521. Bitcoin rose 1.6% to $86,836, remaining below its peak of nearly $125,000 last month.