Tech leads Asian stock rally as Wall Street rebounds
AgenciesAsian stocks rallied on Tuesday, extending a technology-led surge on Wall Street as investors snapped up shares at lower prices after last week’s rout, while another drop i...
Asian stocks surged on Tuesday, propelled by a technology-driven rally on Wall Street as investors snapped up shares at reduced prices following last week's market decline. Artificial intelligence (AI) firms spearheaded the gains across the region, a stark contrast to their downfall after last Tuesday's Democratic victory in Congress, which raised regulatory concerns.
Major tech giants such as Amazon, Microsoft, and Apple led the gains in New York on Monday, with bargain-hunters returning, resulting in a 2.7 percent jump in the Nasdaq and a 2.2 percent increase in the Dow. Seoul's stock market saw a rise of more than 5 percent at one point, driven by chipmakers SK hynix and Samsung, while Tokyo experienced an almost 3 percent surge due to strong performances by Kioxia, SoftBank, and Tokyo Electron.
Taiwan's TSMC and MediaTek also saw substantial gains, lifting the Taiex by 3.5 percent. Hong Kong, Shanghai, Sydney, Singapore, Manila, and Wellington also experienced positive movements. However, traders remain cautious about profitability due to the significant capital injected into the sector, and they are also closely monitoring Nvidia following CEO Jensen Huang's admission of an affair amid reports of a Chinese espionage plot.
SPI Asset Management's Stephen Innes noted that the market's rally was not indicative of a healthy market but rather the result of sellers stepping away, not the sudden rediscovery of courage by the buy-side. Oil prices continued to decline on hopes of an end to the Middle East crisis between the US and Iran. Both main oil contracts fell by around 1 percent on Tuesday, extending Monday's drop where Brent lost almost 6 percent.
They have shed nearly 20 percent this month due to expectations of a resolution to the seven-month-long conflict, which has led to soaring inflation and forced central banks to raise interest rates. As of around 0230 GMT, Tokyo's Nikkei 225 was up 2.9 percent at 60,475.78, Seoul's Kospi increased by 4.1 percent to 5,223.87, while Hong Kong's Hang Seng rose 0.4 percent and the Shanghai Composite gained 0.3 percent.
West Texas Intermediate dropped 1.1 percent to $85.87 per barrel, and Brent North Sea crude fell 1.0 percent to $91.63.
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