Asian stock markets reacted positively on Tuesday, driven by the strong performance of technology stocks on Wall Street, particularly Nvidia.
The Nikkei 225 in Japan surged by 2.4%, reaching 40,248.68, while Australia's S&P/ASX 200 saw a modest increase of 0.3% to 8,279.30. South Korea's Kospi also climbed nearly 1.0% to 2,513.39. However, Hong Kong's Hang Seng index dipped by 0.3% to 19,635.67, and the Shanghai Composite remained relatively stable, inching down less than 0.1% to 3,205.55.
Nippon Steel faced challenges in its attempt to acquire U.S. Steel due to opposition from the Biden administration, resulting in a 1.5% drop in Nippon Steel's shares. In contrast, U.S. Steel's stock surged by 8.1% following the announcement of a federal lawsuit against President Biden's decision to block the merger.
The U.S. stock indexes showed signs of recovery, with the S&P 500 gaining 0.6% for the second consecutive day and the Nasdaq composite rising by 1.2%. Technology companies, particularly Nvidia, played a significant role in this recovery.
The upcoming release of the Federal Reserve's minutes from its last policy meeting is expected to be a significant market-moving event. The monthly jobs report and consumer sentiment updates will also provide further insights into the resilience of the U.S. economy.
In the energy and currency markets, U.S. crude oil prices experienced a slight decline, while the U.S. dollar strengthened against the Japanese yen and the euro.