Global equities extended a rebound on Tuesday, with Asian markets leading gains as investors rushed back into artificial intelligence-related stocks following a recent pullback in valuations. The recovery followed a sharp decline in the previous session, suggesting renewed appetite for high-growth technology assets.
MSCI’s Asia Pacific equities index rose 2.5%, recovering from its steepest drop since March. In South Korea, the Kospi surged as much as 8.5%, fueled by aggressive dip-buying in semiconductor stocks. Chipmaker SK Hynix Inc. jumped 16%, underscoring strong investor demand for AI-linked supply chain exposure.
The upbeat sentiment followed a recovery on Wall Street, where the Nasdaq 100 gained 1.6% and a semiconductor index climbed more than 5%. Futures markets pointed to further gains in U.S. equities, while European stocks were expected to open with modest movement.
Investor optimism continues to center on artificial intelligence as a dominant market theme. Recent developments, including reports of SpaceX’s oversubscribed IPO, OpenAI’s confidential filing for a public listing, and Apple Inc.’s renewed AI-focused product strategy, have reinforced expectations of sustained growth in the sector.
Despite volatility in recent sessions, traders appear increasingly willing to re-enter technology positions, particularly in chipmakers and AI infrastructure companies that have driven much of the market’s recent performance.
In contrast, crude oil prices declined as geopolitical tensions in the Middle East showed signs of easing. Brent crude fell 1.1% to around $93.20 a barrel after Iran and Israel signaled a pause in strikes that had previously raised fears of a wider regional conflict threatening energy supplies.
Currency markets also reflected a cautious risk-on tone, with a Bloomberg gauge of the U.S. dollar edging lower as investors rotated back into equities and risk assets.
Analysts say the simultaneous rally in equities and softening in oil highlights shifting market focus from geopolitical risk back toward earnings momentum and the outlook for technology-driven growth.
