Asian markets opened with modest gains on Tuesday as investors welcomed a rebound in technology shares, while keeping a cautious eye on geopolitical developments and key economic data expected later in the day from Europe and the United States.
In Tokyo, the Nikkei 225 climbed 0.8% by mid-morning, led by strong performance in semiconductor and robotics stocks. South Korea’s Kospi also rose, supported by foreign buying in chipmakers such as SK Hynix and Samsung Electronics. Meanwhile, Hong Kong’s Hang Seng Index rebounded 1.2% after a sluggish Monday, driven by a rally in Chinese tech giants including Alibaba and Tencent.
China’s mainland markets saw lighter trading volumes but remained in positive territory, with the Shanghai Composite up 0.3% and the Shenzhen Component Index up 0.5%. Investors appeared to respond positively to fresh signals from the People’s Bank of China suggesting more targeted liquidity support for small and medium-sized enterprises.
Despite the gains, market sentiment across the region remains restrained by continued tension in the Middle East, following renewed conflict over the weekend. Currency markets showed relative calm, though the yen remains under scrutiny ahead of the Bank of Japan’s policy outlook later this week.
Looking ahead, European markets are expected to open cautiously. Futures indicate a flat to slightly higher start for the FTSE 100 and DAX, as traders weigh inflation prints from France and Italy, and prepare for broader eurozone CPI data later this week. Energy prices remain a concern for European investors, with Brent crude hovering near $85 per barrel.
In the United States, Wall Street is preparing for a busy session following Monday’s mixed performance. Nasdaq futures were up 0.3% in early trading, buoyed by renewed enthusiasm in AI and cloud computing names, while S&P 500 and Dow Jones futures held steady. Markets will be closely watching consumer confidence data and comments from several Federal Reserve officials, which could provide further clues on the direction of interest rates.
Overall, investors are entering the second half of the week with a combination of optimism in tech-led growth and caution regarding monetary policy shifts and global instability. Earnings reports from key US firms, including Micron and FedEx, are also expected to influence sentiment in the coming sessions.
REFH – newshub finance
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