South Korea stocks gain as Asian stocks rise after US tech rally, oil drops

Asian markets soared for a sixth consecutive day on Tuesday, buoyed by a record-breaking performance by chipmakers that propelled the Nasdaq 100 to its highest level since June. Falling oil prices added to the rally, as diplomatic efforts to end the war with Iran continued to progress. The MSCI’s Asia Pacific equity index increased by 0.4 percent, while South Korean and Australian stock benchmarks led the gains. Japanese markets, however, remained closed for a holiday.

The S&P 500 futures remained relatively unchanged at 9:02 am Tokyo time, with Hang Seng futures up by 0.3 percent and Australia’s S&P/ASX 200 gaining 0.2 percent. Euro Stoxx 50 futures also rose by 0.2 percent. These regional gains followed the Nasdaq 100 Index's 0.8 percent rise, with a notable semiconductor gauge climbing over 2 percent. Shopify experienced a significant 7.1 percent surge after forging a partnership with Meta Platforms for its AI product, Muse.

Brent crude oil prices fell further to US$98.45 a barrel, as US President Donald Trump reported a "very good" meeting with Iranian envoys, signaling renewed efforts to resolve the conflict. Treasuries remained steady across the curve, while the US dollar saw a slight increase, and gold prices dipped slightly from the previous session.

Investors are closely watching developments at this week's summit between Trump and Chinese President Xi Jinping for any signs of progress on trade and economic disputes. The potential for oil prices to drop further, coupled with easing inflation concerns, could provide additional support for stocks in the near term.