Asian stock markets mostly extended their gains on Tuesday, buoyed by renewed investor optimism. The positive sentiment stemmed from growing expectations that the US Federal Reserve will soon start cutting interest rates, alongside a cooling of recent concerns around artificial intelligence stocks.
Markets in Green, Led by Tech and Data
Key indices across the region showed strength. Taiwan's market gained 160 points, or 0.5%, to reach 28,310. Mainland China's Shanghai and Shenzhen composites also moved higher, adding 5 and 50 points respectively. South Korea's Kospi was up 11 points, trading at 4,117 around 11:50 AM IST.
However, not all markets participated in the rally. Hong Kong's Hang Seng Index (HSI) dipped 37 points to 25,764, and Japan's Nikkei also fell into the red, losing 60 points.
The rally found solid footing in recent US economic data, which showed a rise in unemployment alongside signs of easing inflation. These developments have strengthened the argument for the Fed to begin lowering borrowing costs, reviving market sentiment after a recent pullback.
Tech Shares and Precious Metals Shine
Technology stocks were at the forefront of the gains at the start of the week. On Wall Street, companies like Nvidia and Tesla were among the strongest performers, even in the absence of major new catalysts, indicating sustained investor appetite for the sector.
In the commodities space, precious metals skyrocketed. Gold prices soared to just below $4,500 an ounce, while silver edged close to $70 an ounce, both setting fresh record levels. The anticipation of US rate cuts made these non-yielding assets more attractive to investors. Geopolitical tensions, including the US actions against Venezuela and the ongoing conflict in Ukraine, provided additional support for safe-haven assets like gold.
Oil Prices Ease Amid Venezuela Tensions
Meanwhile, oil prices edged lower after rising more than 2% on Monday. The movement came amid concerns over Washington's escalating actions towards Caracas. The United States has seized two oil tankers and is pursuing a third, following an order by President Donald Trump to impose a blockade on sanctioned vessels travelling to and from Venezuela.
The overall market mood remains upbeat ahead of the festive break, blending optimism on monetary policy with strategic moves in commodity investments.
