Asian Shares Rise after Tech Stocks Pull Wall Street to another Record

By Evans Momodu
5 minutes read


Asian and Global Markets Overview

Asian shares rallied on Tuesday, spurred by gains in technology stocks and optimism from Wall Street's record highs. Below is the breakdown:

1. Japan (Nikkei 225)

   • +1.7% to 39,183.12.
   • Tokyo Electron surged 4.2% after the U.S. Commerce Department expanded export controls on Chinese chip-related firms, potentially shifting demand to Japanese suppliers.

2. Taiwan (Taiex)

   • +1.3%. The semiconductor-heavy index gained as chipmakers benefited from U.S. export restrictions on China.

3. South Korea (Kospi)

   • +1.8% to 2,497.36.
   • Inflation data suggested low levels sufficient to keep rate-cut expectations alive for 2025, boosting investor sentiment.

4. India (Sensex)

   • +0.6%. Gains led by optimism in global markets and strengthening of the tech and IT sectors.

5. Hong Kong (Hang Seng)

   • +0.8% to 19,708.01. Investor optimism about potential stimulus announcements at an upcoming Chinese economic planning meeting.

6. China (Shanghai Composite)

   • +0.5% to 3,381.05. Stimulus expectations from annual economic work discussions provided support.

Global Markets

1. U.S. Indices

   • S&P 500: +0.2% to a record 6,047.15 (54th record high this year).
   • Nasdaq: +1.0% to 19,403.95, driven by tech stocks like Microsoft (+1.8%) and Meta (+3.2%).
   • Dow Jones: -0.3% to 44,782.00, reflecting mixed performance from industrials.

2. Standout Performers:

   • Super Micro Computer: +28.7% after clearing allegations of misconduct, restoring investor confidence.
   • Big Tech Gains: Meta and Microsoft contributed significantly to market momentum.

3. Weak Performers:

   • Intel: Fell 0.5% after CEO Pat Gelsinger retired.
   • Stellantis: Slumped -6.3% due to CEO departure amid slumping sales.
   • PG&E: Dropped -5% after announcing a $2.4 billion stock offering.

Other Highlights

1. Oil Prices:

   • U.S. Crude: Up $0.24 to $68.34/barrel.
   • Brent Crude: Rose $0.31 to $72.14/barrel.

2. Currency Markets:

   • The U.S. dollar strengthened slightly to 149.95 yen.
   • The euro held steady at $1.0500.

3. Treasury Yields:

   • The 10-year Treasury yield stayed stable at 4.19%, reflecting market anticipation of upcoming U.S. labor market data.

Looking Ahead

Investors are closely monitoring upcoming U.S. labour reports, including:

• October job openings.
• Weekly unemployment claims.
• The critical November jobs report on Friday, which could signal potential Federal Reserve policy changes.

Asian markets remain buoyed by Wall Street's rally, while the U.S.-China tech decoupling appears to favour non-Chinese manufacturers in the semiconductor industry.
Source: AP