Asian markets moved higher on Tuesday after a strong session for US technology stocks, with investors continuing to favour artificial intelligence and technology shares despite rising government bond yields and ongoing geopolitical risks.
Japan’s Nikkei gained 1.1% and Hong Kong’s Hang Seng rose 0.7% after the Nasdaq closed at a record high. Nvidia climbed 2.1% to another record, taking its market value to around $5.76 trillion, while Microsoft also gained.
The technology rally reflects expectations that spending on artificial intelligence infrastructure will continue to support earnings. Investors are now looking ahead to the US third-quarter earnings season, which begins next week with results from major banks. Analysts expect S&P 500 earnings to record strong year-on-year growth, with technology companies expected to remain a major contributor.
Oil prices moved lower, with Brent crude trading around $100 a barrel. Increased Middle Eastern exports and plans by G7 countries to release emergency stockpiles have eased some concerns over supply.
Saudi Arabia has also cut the official selling price of its Arab Light crude for Asian buyers. Gulf oil exports excluding Iran recovered to more than 81% of pre-war levels in September, suggesting that physical supply conditions have improved.
Lower oil prices could provide some support to economies dependent on imported energy, although the situation remains vulnerable to further disruption around the Strait of Hormuz and wider Middle Eastern tensions.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
