Asian stock markets rose Tuesday for the first time in four sessions, propelled by semiconductor companies, as investors sought direction from forthcoming results at large U.S. technology firms to gauge the staying power of the artificial intelligence-driven rally.
The MSCI Asia Pacific Index gained 1.7 percent. Benchmarks in South Korea and Taiwan each advanced more than 2.5 percent, with Samsung Electronics and TSMC among the leading contributors. Japan’s Nikkei 225 climbed 2.2 percent after resuming trade following a holiday.
U.S. equity-index futures pared earlier declines, with Nasdaq 100 contracts rising as much as 0.5 percent. A gauge of American semiconductor stocks recovered ground lost in the previous week’s pullback.
Brent crude declined 0.9 percent to around $88.46 a barrel. The drop came as market participants monitored potential supply risks from the Red Sea following threats by Houthi rebels to disrupt Saudi export routes. West Texas Intermediate crude settled at its highest level since mid-June.
Fund managers noted that equity markets had already absorbed a meaningful correction while corporate earnings demonstrated greater resilience than anticipated. This week marks the start of reporting season for U.S. megacap technology companies, with Tesla and Alphabet scheduled to release results on Wednesday. Microsoft, Meta, Apple and Amazon are set to follow in the subsequent week. Companies face increasing pressure to demonstrate returns on their artificial intelligence investments.
BlackRock Investment Institute analysts maintained that the momentum in artificial intelligence spending and infrastructure remains solid despite recent market swings. They observed that the current global economy relies far less on oil than during past energy disruptions.
In currency markets, the Canadian dollar showed little change after the Trump administration announced plans for a 50 percent tariff on certain Canadian imports, including alcohol, automobiles and dairy products, citing unfair treatment of U.S. goods. The measures are scheduled to take effect in 30 days.
The British pound remained under pressure following Prime Minister Andy Burnham’s appointment of former Defense Secretary John Healey as chancellor in an unexpected reshuffle. UK government bonds weakened as Burnham indicated he would explore limited flexibility within existing fiscal constraints.
A U.S. federal judge issued a temporary halt to Paramount Global’s $110 billion acquisition of Warner Bros. Discovery, ruling that the deal appeared likely to breach antitrust regulations. Separately, European Union authorities imposed a €550 million fine on Alibaba’s e-commerce operations.