HONG KONG – Asian stocks saw growth on Tuesday following a mixed day for U.S. indexes on Monday. Despite a slide from Wall Street heavyweight Nvidia, the majority of stocks rallied, driving optimism in the market. Japan’s Nikkei 225 surged 1% after data from the Bank of Japan revealed an increase in the services producer price index. The Japanese yen also gained strength, trading near its weakest level in approximately 34 years.
In Hong Kong, the Hang Seng rose by 0.5%, while the Shanghai Composite index experienced a slight dip. Meanwhile, Australia’s market saw a gain of 1.2%, with the S&P/ASX 200 reaching 7,829.70. The Kospi in South Korea climbed by 0.4%, showing positive momentum in the region.
On the previous trading day, the S&P 500 experienced a slight decrease, while the Nasdaq composite fell by 1.1% due to drops in technology stocks like Nvidia. Oil and gas companies saw strong performance, with Exxon Mobil climbing 3% and oilfield services provider SLB gaining 4%.
Investor concerns about the AI boom driving the stock market to potentially unsustainable levels have been on the rise. Nvidia’s stock has been receding, shedding nearly 13% in just three days after a remarkable run. As one of the market’s heaviest weights, Nvidia’s movements have significant implications for major indexes like the S&P 500.
Regarding market rotation, there has been a shift in focus away from AI stocks, which could indicate a healthier balance in the market. Treasury yields eased slightly, with hopes that inflation may slow down enough to prompt a cut in the main interest rate by the Federal Reserve.
In other developments, U.S. benchmark crude oil prices experienced minor fluctuations, and the euro saw a slight increase in value. The global market continues to navigate through various challenges and opportunities, shaping the financial landscape for investors and traders alike.