Asian stock markets advanced on Tuesday as investors followed a technology-led rally on Wall Street, where renewed enthusiasm around artificial intelligence pushed the Nasdaq Composite to a record closing high.
South Korea’s Kospi jumped about 1.6 per cent, while Hong Kong’s Hang Seng gained nearly 0.6 per cent and China’s Shanghai Composite advanced around 0.4 per cent in early trading. Australia’s S&P/ASX 200 was also higher, while Japanese markets remained closed for a holiday.
The gains followed a powerful session in New York.
The Nasdaq Composite climbed 2.3 per cent to 27,122.09, while the S&P 500 gained 1.5 per cent to 7,764.70, putting it close to its previous record. The Dow Jones Industrial Average rose 0.7 per cent to 52,048.83.
Semiconductor companies were among the strongest performers.
Intel surged 12.2 per cent and Arm Holdings jumped 17 per cent, helping the Philadelphia Semiconductor Index gain 4.3 per cent.
AI Optimism Returns
The rally represents another shift in sentiment towards technology companies after investors recently questioned the scale of spending required to build artificial-intelligence infrastructure.
Early signs of progress around Meta Platforms’ latest AI technology helped restore enthusiasm, while semiconductor companies benefited from expectations that demand for computing power will continue expanding.
Asian chipmakers quickly followed their US counterparts higher, with Samsung Electronics and SK Hynix among the biggest contributors to regional market gains.
The rally demonstrates how heavily global equity markets have become influenced by expectations surrounding artificial intelligence.
Chipmakers sit near the centre of that investment cycle because training and operating increasingly sophisticated AI models require large quantities of advanced processors, memory and data-centre equipment.
Lower Oil Prices Ease Market Pressure
Technology was not the only factor improving sentiment.
Oil prices fell sharply on Monday amid hopes of diplomatic progress surrounding the Iran conflict and signs of increased Saudi exports.
Brent crude fell 3.9 per cent to around $99.86 per barrel, while US West Texas Intermediate dropped 4.9 per cent to approximately $95.43.
That decline provided relief to investors concerned that persistently expensive energy could keep global inflation elevated and force central banks to maintain tighter monetary policy.
US Treasury yields also eased, with the benchmark 10-year yield falling below 5 per cent after recently crossing that threshold.
The combination of stronger technology shares, lower crude prices and easing bond yields has therefore provided a more supportive environment for global equities.
However, investors remain exposed to considerable volatility.
Any deterioration in Middle East diplomacy could quickly reverse the decline in energy prices, while technology valuations remain heavily dependent on expectations that massive AI investment will eventually generate sufficient earnings.
For now, those concerns have been overshadowed by renewed enthusiasm, sending the Nasdaq to a record and giving Asian markets a strong start to Tuesday’s trading.
