Asian shares demonstrated a predominantly positive trend on Tuesday, reflecting gains in Wall Street, with South Korea's stock market making a notable recovery after significant declines triggered by a technology sell-off. Oil prices remained stable following announcements from both the United States and Iran indicating their intent to send delegations to Qatar, albeit Iran clarified that no talks had been prearranged with the U.S.
In U.S. markets, futures saw a slight uptick. South Korea’s Kospi index experienced a rise of 1.3%, reaching 8,504.43, reversing the downward trend where it had fallen 0.2% and 5.8% in the prior two trading sessions. The Kospi has notably gained from the global AI excitement driven by increased demand for semiconductors from firms such as SK Hynix. Nonetheless, concerns regarding the sustainability of the burgeoning AI stock boom have added layers of volatility across global markets, including South Korea.
On Monday, significant announcements from major corporations were made, with Samsung Electronics and SK Hynix outlining plans for over $500 billion in investments aimed at bolstering the country's chipmaking and AI sectors. As a result, Samsung's share price surged by 3.6% on Tuesday, while SK Hynix’s stock appreciated by 1%.
Meanwhile, Japan's Nikkei 225 index rose by 0.9% to close at 70,116.82, benefitting from the AI sector boom as well. Notably, Tokyo Electron, a manufacturer of chip equipment, saw its stock price jump by 4.3%. Additionally, SoftBank Group, an investment firm with stakes in OpenAI, reported an increase of 0.6% in its share price.
In contrast, Hong Kong's Hang Seng index fell by 0.8% to 22,836.39, while the Shanghai Composite index experienced a modest gain of 0.2%, trading at 4,080.42. Australia's S&P/ASX 200 also inched up by less than 0.1% to 8,825.80. Taiwan's Taiex index showcased a robust increase of 3.2%, whereas India's Sensex encountered a slight decline of 0.1%.
Oil prices exhibited a modest decline early Tuesday yet remained close to the levels recorded prior to the initiation of the war between the U.S. and Iran back in late February. Traders continued to closely observe the ongoing developments surrounding U.S.-Iran negotiations aimed at establishing a permanent cessation of hostilities in the ongoing four-month conflict. Brent crude, which serves as the international benchmark, decreased by 0.2% to $73.73 per barrel, still notably higher than the approximately $72 per barrel noted before the conflict began. Concurrently, benchmark U.S. crude prices fell by 0.4%, landing at $70.49 per barrel.
On Monday, Wall Street experienced a rally, rebounding from earlier losses. The S&P 500 index appreciated by 1.2% to close at 7,440.43, while the Dow Jones Industrial Average made a gain of 0.6%, reaching 52,182.74. The technology-centric Nasdaq composite advanced by 2.1%, finishing at 25,820.14. Noteworthy stocks in the tech sector included Intel, which rose by 2.7%, Micron Technology at 1.1%, Nvidia at 1.3%, and Advanced Micro Devices (AMD) which increased by 3.4%.
In currency markets, the U.S. dollar strengthened against the Japanese yen, increasing to 162.18 yen from 161.94. Meanwhile, the euro traded at $1.1399, slightly down from the previous rate of $1.1422.
