Asian Markets Advance as Wall Street Tech Rally Lifts Investor Sentiment

Asian stocks advanced on Tuesday, following a broad rally on Wall Street that helped major US indices recover most of their significant losses from the previous week. US futures edged higher while oil prices declined.

In Japan, the benchmark Nikkei 225 rose 2.6 per cent to 60,279.37. Shares in SoftBank Group, an investor in OpenAI, jumped 15 per cent ahead of its earnings release after hitting a one-year low on Monday. Computer chip equipment maker Tokyo Electron surged 5.6 per cent, and testing equipment maker Advantest gained 3.4 per cent.

South Korea's Kospi climbed 4 per cent to 5,219.37, driven by chipmakers Samsung Electronics and SK Hynix, which gained 4.6 per cent and 5.6 per cent respectively. In Hong Kong, the Hang Seng rose 0.4 per cent to 24,535.74, while the Shanghai Composite index edged 0.4 per cent higher to 3,673.54.

Customs data released on Tuesday showed that China's exports in October climbed 35.2 per cent from a year earlier, while imports grew 41.6 per cent. The trade surplus for the year has already surpassed USD 1 billion, putting the country on track for another record.

Australia's S&P/ASX 200 rose 1.1 per cent to 9,131.70. Indian markets were closed for Diwali-Balipratipada, with trading scheduled to resume on November 11.

The positive sentiment in Asia followed a strong session on Wall Street. On Monday, the S&P 500 jumped 2.3 per cent, sitting just 3.4 per cent below its all-time high set last month. The Dow Jones Industrial Average gained 2.2 per cent, and the Nasdaq composite rose 2.7 per cent. Stocks were buoyed by a decline in Brent crude prices, which fell after US President Donald Trump stated that a resumption of strikes on Iran is unlikely if progress is made in negotiations.

Several strong profit reports also supported market sentiment. Constellation Energy climbed 10.5 per cent after reporting summer profit and revenue that beat analysts' expectations.

Meanwhile, the artificial intelligence sector faced ongoing scrutiny. Markets had previously dropped on worries that Democratic victories in US midterm elections could lead to tighter government restrictions on AI data centres and higher borrowing costs. Nvidia shares fell 4.3 per cent after the company announced it is investigating an inquiry involving its CEO and a business executive.

In currency and commodity markets, Brent crude edged 0.9 per cent lower to USD 91.74 a barrel, and US benchmark crude fell 1 per cent to USD 85.97 per barrel. The US dollar rose to 158.06 Japanese yen, while the euro fell to USD 1.1222.

"Global market movements and macroeconomic shifts directly influence investor sentiment across international borders, including the technology and startup sectors. Fluctuations in borrowing costs, energy prices, and regulatory scrutiny on critical technology infrastructure like AI data centres serve as important risk indicators for venture capital and growth-stage investments worldwide. Entrepreneurs and investors must monitor these macroeconomic trends closely when planning their capital deployment and expansion strategies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes