Asian shares were predominantly higher on Tuesday, influenced by Wall Street’s record-breaking performance. Japan’s Nikkei 225 index surged by 2.0% to reach a new all-time high of 41,580.17, with significant contributions from technology-related stocks. Australia’s S&P/ASX 200 and South Korea’s Kospi also saw gains, while Hong Kong’s Hang Seng and the Shanghai Composite indexes experienced moderate increases.
Market analysts, such as Yeap Jun Rong from IG, noted a cautious approach to risk-taking in anticipation of the Federal Reserve Chair’s testimony and the upcoming U.S. inflation data release. Wall Street witnessed the S&P 500 and Nasdaq composite indexes achieving new highs, with tech stocks leading the gains. The Dow Jones Industrial Average saw a slight decline.
The S&P 500 index has broken records 35 times this year, boosted by the steady rise of Wall Street indexes. Notable gains were seen in tech stocks like Nvidia, Broadcom, and Advanced Micro Devices, while specialty glassware maker Corning experienced a significant surge after revising its sales forecast. Troubled airplane manufacturer Boeing saw a slight increase after agreeing to plead guilty to criminal fraud charges related to 737 Max crashes.
However, entertainment giant Paramount Global encountered a 5.3% decline following its merger agreement with Skydance. Market focus is now on upcoming earnings reports, particularly those of Delta Air Lines and major banks like JPMorgan, Citigroup, and Wells Fargo. Federal Reserve Chair Jerome Powell is scheduled to address Congress to discuss inflation and economic growth, with markets awaiting updates on inflation levels and Treasury yields.
Energy trading saw benchmark U.S. crude and Brent crude prices edging up slightly. In currency trading, the U.S. dollar showed a minor increase against the Japanese yen and the euro. Traders are closely monitoring Powell’s testimony for insights into the Fed’s stance on inflation and economic recovery strategies.
