European stocks decline due to faster-than-expected contraction in Japanese economy

Asian Stocks Rise, US Treasury Yields Fall and Tech Companies Embrace AI Research and Development

Stocks in Asia showed strong gains overnight, with the Shanghai Composite ending the session 0.1% higher in China, the Nikkei rising 1.4% in Japan and the Hang Seng climbing 1.5% in Hong Kong. US Treasury yields continued to fall in Tokyo trading, hitting six-week lows. This led to the yen’s recovery, despite data showing a larger contraction in the Japanese economy than expected in the first quarter.

These movements came after Wall Street saw all-time highs due to lower US inflation, leading to expectations of two interest rate cuts by the Federal Reserve this year. The S&P 500, Dow Jones, and Nasdaq Composite all reached record highs, with gains of 1.2%, 0.9%, and 1.4% respectively.

The dollar weakened further, reaching multi-week lows against the euro and sterling, while gold prices approached record levels. Crude oil also saw gains after a strong rebound from a two-month low.

In addition to these developments, there were also reports that major tech companies were planning to invest heavily in artificial intelligence (AI) research and development in order to stay ahead of their competitors. This news boosted shares of companies like Nvidia and Advanced Micro Devices (AMD), which specialize in AI technologies.

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