Asian stock markets advanced on Tuesday, extending a global rally after Wall Street closed at its first record of the year, driven largely by renewed enthusiasm for artificial intelligence-linked technology stocks. Oil prices edged lower as investors assessed recent geopolitical developments.
Most major Asian indices tracked gains from the United States, where strong performances by large technology firms lifted investor sentiment. Optimism around artificial intelligence continued to dominate market positioning, despite lingering concerns over high valuations in the sector.
Attention is now turning to upcoming US economic data, including employment figures, which could influence expectations around Federal Reserve interest rate decisions later this month. Recent data showing continued contraction in US manufacturing has reinforced hopes that the central bank may have room to cut interest rates.
Market participants largely brushed aside geopolitical tensions following the weekend US operation in Caracas that led to the removal of Venezuela’s president. Analysts noted that markets have become increasingly resilient to political shocks unless they threaten supply chains or tighten financial conditions.
On Wall Street, the Dow Jones Industrial Average closed at a new record, supported by gains in major technology and energy stocks. The S&P 500 and Nasdaq also ended higher, reflecting expectations of a more accommodative monetary policy environment.
Across Asia, Hong Kong rose more than one percent, while Tokyo, Shanghai, Singapore, Wellington, Taipei, Manila, and Jakarta also posted solid gains. Seoul edged lower after a strong rally the previous day.
In corporate news, South Korean automaker Hyundai rose but retreated from earlier gains after unveiling a prototype humanoid robot powered by artificial intelligence at the Consumer Electronics Show in Las Vegas. The company said the robot is expected to begin work at a US plant by 2028.
Sydney slipped despite a sharp rise in BlueScope Steel shares, which surged after the company said it is evaluating a joint takeover bid valued at US$8.8 billion.
Oil prices eased after rising in the previous session, as investors weighed the implications of political developments in Venezuela. While the country holds significant oil reserves, analysts pointed to infrastructure constraints, pricing pressures, and political uncertainty as factors limiting any immediate increase in supply.
Market Snapshot (around 0230 GMT)
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Tokyo (Nikkei 225): +0.7% at 52,191.58
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Hong Kong (Hang Seng): +1.5% at 26,744.09
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Shanghai Composite: +0.9% at 4,060.24
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WTI Crude: −0.5% at $58.01 per barrel
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Brent Crude: −0.4% at $61.49 per barrel
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Euro/Dollar: $1.1723
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Pound/Dollar: $1.3545
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Dollar/Yen: 156.45
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Dow Jones: +1.2% at 48,977.18
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FTSE 100: +0.5% at 10,004.57
