Asia Tech Rally Boosts Markets; UK Defends Investment After Merck Lab Cancellation

Lead: Asian technology shares surged to record highs on Thursday as investors awaited U.S. inflation data, while Britain defended its investment appeal after Merck said it would scrap plans for a new London research facility.

Nut Graf: The twin developments underscore growing excitement over artificial intelligence’s impact on global markets and persistent concerns about the U.K.’s life sciences environment-factors likely to influence policy and investment flows in the weeks ahead.

Asia Tech Shares Surge on AI Optimism

Japan’s Nikkei jumped 1.2% to a fresh high, led by SoftBank, which gained nearly 9% after Oracle’s AI-driven profits outlook sent its shares up 36%.
Taiwan and South Korea also set new records, buoyed by expectations the U.S. Federal Reserve will cut rates following mild inflation figures.

Britain Defends Investment Appeal

U.K. ministers said the country remains “the most appealing destination for investment globally” after Merck abandoned its Kings Cross labs project.
Merck blamed a “challenging business environment” and undervaluation of innovative medicines for halting construction.
Government announced a £520 million manufacturing fund to attract private capital into life sciences.

Oil Prices Ease on Demand Worries

Brent crude slipped to $67.38 a barrel, and U.S. WTI fell to $63.54, as concerns over U.S. oversupply offset Middle East and Ukraine tensions.
U.S. oil inventories unexpectedly rose by 39 million barrels, intensifying forecasts for further price declines.

Looking Ahead

Investors will zero in on the U.S. consumer price index due later today to gauge the Fed’s rate-cut trajectory, while the U.K. plans further measures to reassure life sciences firms and shore up foreign direct investment.