Asian stocks gain as Wall Street tech rally lifts investor sentiment

Asian stocks experienced an increase on Tuesday following a rally on Wall Street, where tech stocks led the market's recovery from last week's significant losses. The US futures edged higher, while oil prices experienced a decline. Japan's Nikkei 225 index rose by 2.6 percent to reach 60,279.37, while SoftBank Group's shares surged 15 percent ahead of their earnings release later in the day.

Computer chip equipment manufacturer Tokyo Electron also gained 5.6 percent, and testing equipment maker Advantest increased by 3.4 percent. South Korea's Kospi index climbed 4 percent to 5,219.37, and chipmakers Samsung Electronics and SK Hynix both rose by 4.6 percent and 5.6 percent, respectively. Hong Kong's Hang Seng index saw a slight rise of 0.4 percent to 24,535.74, while the Shanghai Composite index edged up by 0.4 percent to 3,673.54.

China's exports in October increased by 35.2 percent year-over-year, and imports grew by 41.6 percent, putting the country on track for another record year. The trade surplus for 2026 has already surpassed USD 1 trillion. Australia's S&P/ASX 200 index rose by 1.1 percent to 9,131.70. Earlier, the S&P 500 had jumped 2.3 percent for a second consecutive gain after a sharp decline due to concerns about Democratic victories in the US midterm elections potentially slowing AI data center construction.

The S&P 500 had its best day since April and was just 3.4 percent below its all-time high. The Dow Jones Industrial Average gained 2.2 percent, and the Nasdaq composite rose 2.7 percent. The decline in Brent crude prices contributed to the rally, following President Donald Trump's statement that a resumption of strikes on Iran was "highly unlikely" if progress was made in negotiations to end the war.

However, US Secretary of State Marco Rubio warned that Iranian demands had been "outrageous and ridiculous." Positive profit reports from major US companies, such as Constellation Energy, which jumped 10.5 percent after reporting profits and revenue that surpassed analysts' expectations, further boosted investor sentiment. The tech boom and the high valuation of Nvidia, a leading AI stock, faced criticism, with the stock falling by 4.3 percent.

Nvidia's board stated that they saw no evidence of national security compromise or secret leakage, but their investigation would examine all available information. China's Ministry of Foreign Affairs dismissed the allegations as mere smears against China. Lower Treasury yields over the past month helped ease mortgage and other loan rates, benefiting stock and investment prices.

Brent crude prices edged down by 0.9 percent to USD 91.74 per barrel, while US benchmark crude oil fell by 1 percent to USD 85.97 per barrel. The US dollar appreciated to 158.06 Japanese yen, while the euro decreased to 1.1222 USD.