Asian stock markets mostly advanced on Tuesday, buoyed by investor enthusiasm for artificial intelligence (AI) stocks amid anticipation of major corporate earnings reports and upcoming central bank decisions. The rally in tech shares was led by South Korea’s Kospi, which surged 3.6% to 5,667.99, with significant gains from chipmaker SK Hynix and Samsung Electronics, up 7% and 4.8%, respectively.
Japan’s Nikkei 225 also saw a notable rise, climbing 2.2% to 63,542.77. The increase was driven by a jump in semiconductor testing equipment maker Advantest, which surged over 10%, and a 7% rise in SoftBank Group, reflecting growing optimism in AI-related investments. However, not all Asian markets followed the upward trend; Hong Kong’s Hang Seng Index slipped 0.2%, and China’s Shanghai Composite edged down 0.1%. Meanwhile, Taiwan’s Taiex advanced 0.5%, and Australia’s S&P/ASX 200 gained 0.3% to 8,838.10.
In the United States, Wall Street closed higher on Monday, with the S&P 500 rising 0.7%, the Nasdaq Composite gaining 0.8%, and the Dow Jones Industrial Average up by 0.3%, driven by a recovery in technology stocks. Nvidia, in particular, rose 2.4%, recouping some of its recent losses amid ongoing concerns about the costs and returns of AI infrastructure investments.
Market attention is also focused on forthcoming earnings reports from major technology companies, including Alphabet and Microsoft on Wednesday and Amazon on Thursday. The results are expected to provide insights into the impact of AI investments on revenue and profitability. Additionally, the Federal Reserve’s policy decision on Wednesday could influence market sentiment, particularly regarding interest rates and inflation outlook.
Oil prices continued to decline on Tuesday, with Brent crude falling 0.8% to $109.82 a barrel and US benchmark crude dropping 0.8% to $100.93. In currency markets, the US dollar strengthened slightly against the Japanese yen, trading at 157.65 yen, while the euro edged down to $1.1173.
Investors are also keeping a close eye on a high-level meeting of China’s ruling Communist Party, which may yield policy announcements affecting the country’s economic and financial landscape. The combination of technology earnings, AI investment trends, and monetary policy decisions is expected to shape global market movements in the coming days.
