FED'S GOOLSBEE: U.S. PRODUCTIVITY GAINS HAVE PROVED SOMEWHAT DURABLE, BUT IMPLICATION FOR INTEREST RATES IS MORE SUBTLE

IRAN DENIES ARMED FORCES STRUCK SOUTH KOREAN SHIP IN HORMUZ – AFP

The artificial intelligence boom may be nearing a slowdown amid rising costs, potentially weighing on Asia-Pacific export growth, Moody’s Analytics says. The AI upswing has helped offset pressure from higher U.S. tariffs on the region’s exports, it notes. However, stretched equity valuations, rising prices, and selective hardware shortages suggest the cycle is “increasingly ripe for a pause,” it adds. The Middle East conflict has further lifted geopolitical and trade risks for Asia-Pacific economies. Moody’s warns that the mix of higher inflation, trade and supply-chain disruptions, and elevated asset valuations raises the risk of policy missteps across the region.