Asian equities predominantly advanced on Tuesday, following a surge in technology stocks that drove Wall Street's principal indices higher the previous evening.
In the currency markets, the dollar index showed gains in Asian trading, recovering from a previous decline of up to 1% during intraday trading on Monday. Meanwhile, U.S. Treasury yields remained relatively stable after the 30-year note reached a peak not seen in over a year on Monday.
Oil prices settled following their first decline in six sessions, while gold prices inched up as investors awaited further U.S. economic data this week to gain insight into the Federal Reserve’s future interest rate decisions.
China’s Shanghai Composite index saw slight gains, with the technology sector under scrutiny following the United States' decision to blacklist Tencent Holdings Ltd. and Contemporary Amperex Technology Co. Ltd. over alleged affiliations with the Chinese military. Conversely, Hong Kong’s Hang Seng index dropped by 0.3%, influenced by concerns regarding the yuan.
In Japan, the Nikkei average surged 2.3%, spurred by the yen reaching its lowest level against the dollar since July 2024, which in turn bolstered export-driven stocks.
South Korea’s Kospi index increased by over 1%, buoyed by Foxconn’s announcement of its highest-ever fourth-quarter revenue, surpassing expectations. This achievement highlighted its status as the largest contract manufacturer of Apple iPhones.
Australia’s S&P/ASX 200 index experienced a modest rise of 0.3%, whereas New Zealand’s S&P/NZX-50 index fell by 0.4%.
The U.S. market witnessed broad gains overnight, with the dollar declining and yields on long-term Treasury securities rising slightly, following Foxconn’s report of record fourth-quarter revenue. Additionally, President-elect Donald Trump dismissed reports suggesting he was considering moderating his tariff policies as "fake news."
The Nasdaq Composite, with its tech-heavy composition, increased by 1.2%, while the S&P 500 rose by 0.6%. The Dow, however, ended slightly lower.
In Europe, stocks rose the most in over a month on Monday amid speculation that the Trump administration may adopt less aggressive tariff measures. The pan-European STOXX 600 climbed 1%, with Germany’s DAX up 1.6%, France's CAC 40 surging 2.2%, and the U.K.'s FTSE 100 increasing by 0.3%.
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