Asian markets mostly saw gains on Tuesday, buoyed by optimism surrounding rising technology stocks on Wall Street, led by Nvidia’s strong performance.
Japan’s Nikkei 225 surged 2.4% to 40,248.68, while Australia’s S&P/ASX 200 saw a modest increase of 0.3% to 8,279.30. South Korea’s Kospi added nearly 1% to 2,513.39. In contrast, Hong Kong’s Hang Seng index dropped 0.3% to 19,635.67, and the Shanghai Composite saw a marginal dip of less than 0.1%, settling at 3,205.55.
Nippon Steel, which is facing a blocked attempt to acquire U.S. Steel due to opposition from the Biden administration, fell 1.5% in Tokyo trading. This came shortly after the Japanese steelmaker’s CEO reaffirmed its commitment to pursuing the deal. On the other hand, U.S. Steel rose 8.1% following its filing of a federal lawsuit against President Joe Biden’s decision to block the $15 billion acquisition, citing political motivations and the lack of evidence that the merger would pose a security risk.
Stephen Innes, managing partner at SPI Asset Management, noted that investors are closely monitoring potential policy shifts under President Donald Trump, whose administration is set to begin soon. He stated that traders are adjusting their strategies in anticipation of possible changes to economic and policy directives.
In the U.S., stock markets regained some ground after recent declines over the holiday season. The S&P 500 gained 0.6% for the second consecutive day, recovering from its five-day losing streak, the longest since April. Meanwhile, the Dow Jones Industrial Average edged down by 0.1%, and the Nasdaq Composite rose 1.2%. Tech stocks, particularly those tied to the artificial intelligence boom, were the clear leaders.
Nvidia climbed 3.4%, surpassing its previous record set in November, following its CEO Jensen Huang’s highly anticipated speech at the CES convention in Las Vegas. Despite concerns about the potential for an AI stock bubble, companies in this sector continue to tout the long-term potential of the technology.
Uber Technologies also saw a 2.7% increase after announcing plans to accelerate its $1.5 billion share repurchase program as part of a broader $7 billion buyback initiative.
The S&P 500 closed up 32.91 points at 5,975.38, while the Dow slipped 25.57 points to 42,706.56, and the Nasdaq Composite rose by 243.30 points to 19,864.98.
On Thursday, both the New York Stock Exchange and Nasdaq will observe a National Day of Mourning for former President Jimmy Carter, closing their stock and options markets. Later in the week, the Federal Reserve will release the minutes from its last policy meeting, where it cut interest rates for the third consecutive time. Investors will also focus on the monthly jobs report and consumer sentiment data, which are scheduled for release on Friday.
The U.S. economy has remained resilient, despite the Federal Reserve’s interest rate cuts, which began in September after inflation came close to its 2% target. However, with inflation showing signs of persistent pressure, concerns are rising that the Fed may need to keep rates higher for longer. This has led to a rise in long-term Treasury yields, with the 10-year Treasury yield reaching 4.61%, up from 4.60% late last week.
In energy markets, U.S. crude oil declined by 33 cents to $73.23 per barrel, while Brent crude dropped 28 cents to $76.02. In the currency markets, the U.S. dollar strengthened to 158.29 yen from 157.58, and the euro fell slightly to $1.0381 from $1.0392.
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