WS #13102

The dominant market narrative is a sharp global tech rebound, driven by Microsoft's blowout earnings (Azure growth, Copilot super app, 16% stock surge) and Amazon's strong results (AI agents, sales >$200B), which has triggered a massive rally in Asian markets, particularly South Korea's Kospi (+16%) and Japan's Nikkei (+5%). This is a counter-signal to the previous week's AI-bubble selloff, suggesting the AI demand story remains intact. However, Apple's earnings, while record-breaking, disappointed on guidance due to supply constraints, causing a 5.5% after-hours drop, a notable divergence from the tech rally narrative. Geopolitically, the US-Iran conflict is escalating (missile strikes, Strait of Hormuz disruptions, Egypt drawn in), keeping oil prices elevated (~$89 Brent) and adding inflationary pressure, while the US GDP price index surged to 6.2%, raising stagflation concerns. A suspected Japanese yen intervention (3% drop in USD/JPY) ahead of the BOJ decision adds another layer of macro uncertainty. China's manufacturing PMI fell to 49.2, signaling contraction, which could weigh on global growth sentiment. The Hamas disarmament deal announcement is a potential geopolitical positive but remains unconfirmed.