Asian stocks rose on Tuesday, driven by a surge in technology shares on Wall Street that pushed the Nasdaq index to a record high. Lower oil prices also provided additional support to markets, despite US long-term Treasury yields remaining near their highest levels in several decades. Japan's Nikkei index climbed 1.1%, while Hong Kong's Hang Seng index gained 0.7%.
The broader MSCI Asia-Pacific index, excluding Japan, remained steady. In contrast, South Korean stocks fell by about 1% after a holiday. European stock futures rose 0.3%, while Nasdaq and S&P 500 futures gained 0.2% and 0.1%, respectively. The US stock market's upward momentum was fueled by weaker-than-expected job data, which strengthened investors' bets that the Federal Reserve will not raise interest rates this month.
The Nasdaq index achieved a record close, driven by a 2.1% increase in Nvidia shares, bringing the company's market value to approximately $5.76 trillion. According to Goldman Sachs, market expectations suggest that S&P 500 companies' earnings will grow by around 27% in the third quarter, with companies benefiting from AI infrastructure spending contributing more than half of this growth.
Despite the decreased likelihood of a US interest rate hike this month, from 71% to 23% over the past week, US Treasury yields continued to rise. This was driven by inflation and debt concerns, with the 10-year US Treasury yield reaching 5.3154% in Asia. The 30-year yield stabilized at 5.6749% after briefly hitting 5.7029%, the highest since 2002.
The euro continued its decline to $1.1215, having fallen 0.8% overnight to $1.116, its lowest level since May 2025. This was due to growing concerns about France's financial situation and political uncertainty in Spain. In commodities, Brent crude rose 0.6% to $100.88 per barrel, after a 1.9% drop in the previous session.
Gold prices fell 0.4% to $1,921.75 per ounce. The dollar index remained steady at 102.2, following a 0.9% weekly gain. Investors are closely monitoring economic data and central bank actions for further market direction. Regional markets showed mixed results, reflecting varied responses to global economic trends.
The market's reaction to economic indicators and geopolitical events will likely influence trading decisions in the coming days. With US yields at elevated levels and oil prices experiencing fluctuations, market participants are assessing the potential impact on global economic growth and corporate earnings.
Key points
- Asian stocks rose on Tuesday, driven by Wall Street's tech surge and lower oil prices.
- US Treasury yields continued to rise, driven by inflation and debt concerns.
- The euro declined to its lowest level since May 2025, amid concerns about France's financial situation and Spanish political uncertainty.
