Asian markets showed positive momentum on Tuesday, with Tokyo’s Nikkei 225 rising 1.6% and Seoul’s Kospi surging 2.1%. Semiconductor companies like Tokyo Electron and Advantest led the gains. However, Hong Kong’s Hang Seng dropped 0.5%, while the Shanghai Composite index recovered from early losses, gaining 0.3%. Australia’s S&P/ASX 200 also advanced 1.3% after the central bank decided to keep interest rates unchanged.
The Reserve Bank of Australia is expected to delay any rate hikes as it waits for more data. Analysts believe that rate cuts may take longer to materialize than anticipated. Taiwan’s Taiex rose 0.6%, while India’s Sensex dropped 0.7% as the country entered the third phase of its national elections. In the US, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all posted gains on Monday.
Technology stocks, particularly Nvidia and Super Micro Computer, led the market higher in the US. Nvidia is up 86.1% for the year, while Super Micro Computer has gained 192.1%. Berkshire Hathaway also reported positive quarterly results, helping to offset losses for companies like Spirit Airlines, which faced increased competition. The US stock market has been volatile due to inflation fears and speculation about interest rate cuts by the Federal Reserve.
Traders are predicting an 89% chance of a Fed rate cut by the end of the year, up from 81.6% a week earlier. Lower rates could help ease economic pressures. Economists expect two rate cuts this year, in July and November. Corporate earnings reports have been better than expected globally, with companies in the US, Europe, and Japan reporting positive growth.
In trading, US crude oil prices rose to $78.72 per barrel, while Brent crude reached $83.57 per barrel. The dollar also strengthened against the Japanese yen but remained stable against the euro. This week is relatively quiet in terms of economic news, with most S&P 500 companies already reporting their first-quarter earnings. However, big names like The Walt Disney Co. and Uber Technologies are yet to announce their results, and traders will be watching for any surprises in these reports.
