Asian shares surged on Tuesday, with Tokyo’s benchmark Nikkei 225 hitting a record high of 41,580.17, driven by gains in technology-related shares. The positive momentum followed Wall Street’s milestone achievements, with the S&P 500 and Nasdaq composite reaching all-time highs.
In Japan, computer chip maker Tokyo Electron saw a 3.8% surge, while chip testing equipment maker Advantest rose 4.1%. Other tech-related companies like Disco Corp. and Shin-Etsu Chemical also posted gains. Australia’s S&P/ASX 200 and South Korea’s Kospi also saw modest increases, while Hong Kong’s Hang Seng index and Shanghai Composite surged.
Investors are cautiously optimistic ahead of Federal Reserve Chair Jerome Powell’s testimony and key U.S. inflation data later in the week. Powell is expected to address Congress on Tuesday and Wednesday, providing insights into the central bank’s approach to taming inflation while supporting economic growth.
Tech stocks, including chipmakers like Nvidia and Advanced Micro Devices, led gains on Wall Street, offsetting declines in other sectors. Specialty glassware maker Corning saw a significant 12% surge after raising its sales forecast, while troubled airplane maker Boeing rose slightly following a criminal fraud charge related to 737 Max jetliner crashes.
On the downside, entertainment giant Paramount Global slid 5.3% after announcing a merger with Skydance. Traders are eagerly awaiting earnings reports from Delta Air Lines, JPMorgan, Citigroup, and Wells Fargo later in the week, which could provide insights into consumer debt levels and potential delinquencies.
Inflation data remains a key focus for investors, with reports on consumer and wholesale inflation expected later in the week. Treasury yields were stable, while energy trading saw benchmark U.S. crude and Brent crude prices edging up slightly.
Overall, market analysts are closely monitoring Powell’s testimony and inflation data for signals on the economy’s trajectory. The global market remains cautiously optimistic amid ongoing economic challenges and inflation concerns.
