Regional gains mirror the Nasdaq 100’s best session in three weeks
STOCKS in Asia climbed for a second day as a rebound in chipmakers at the heart of the artificial intelligence boom offset concerns over rising oil prices after the renewed escalation in the US-Iran conflict.
The MSCI Asia-Pacific Index climbed 0.8 per cent, extending its biggest one-day gain in a month.
The Kospi Index, a bellwether for AI investments, jumped over 5 per cent. The regional gains followed the Nasdaq 100’s best session in three weeks, as a 5.2 per cent surge in a key semiconductor gauge signalled renewed demand for beaten-down chipmakers.
Among the main moves across markets, the S&P 500 futures were little changed as of 9.02 am Tokyo time.
The Hang Seng futures fell 0.7 per cent, Japan’s Topix was little changed and Australia’s S&P/ASX 200 rose 0.1 per cent.
Adding to the optimism, Nvidia said its latest chip designs are now reaching customers, while Intel rose on plans for further job cuts.
After the close, Super Micro Computer surged following an update that pointed to a growing order backlog.
American depositary receipts of Taiwan Semiconductor Manufacturing climbed 5.5 per cent after the Nikkei reported the company is set to raise prices by up to 10 per cent.
Early attention in Asia is on the yen, which slid past 163 per US dollar for the first time since 1986, increasingly testing Japanese authorities’ resolve to intervene.
Elsewhere, crude oil prices climbed, reigniting inflation concerns that pushed Treasury yields to the highest in two months. Brent advanced 0.6 per cent to US$91.52 a barrel as US President Donald Trump minimised the prospect of immediate talks with Iran.
The rally in technology stocks followed weeks of volatility in 2026’s best-performing corner of the market as investors questioned whether massive AI spending will translate into commensurate returns.
The focus now shifts to earnings from Alphabet and Tesla starting from Wednesday, with lofty expectations leaving little room for disappointment.
“The burden of proof has changed. Investors are no longer asking whether companies can withstand the uncertainty,” said Bret Kenwell at eToro. “They want growth and guidance strong enough to justify elevated valuations.”
Elsewhere, gold and silver advanced on dip-buying. Bullion advanced as much as 2 per cent to trade above US$4,080 an ounce, while silver jumped as much as 5 per cent on Tuesday.
Treasuries fell, pushing 10- and 30-year yields to the highest levels in about two months on Tuesday, as a surge in crude oil prices stoked concern that inflationary pressures will prompt the Federal Reserve to raise interest rates.
Meanwhile, the US plans to impose a 100 per cent tariff on generic drugs imported to the US beginning in August 2028, Trump said in a social media post on Tuesday.
Still, investors remain focused on company results. US earnings growth should continue to support stocks in the second half of 2026, even as near-term bullish positioning and macro headwinds weigh on share prices, according to Goldman Sachs Group strategists.
Nearly 20 per cent of companies in the S&P 500 by market value are slated to report results this week.
Alphabet and Intel – which reports on Thursday – will give investors a clearer read on how AI spending is reshaping the tech industry.
While the recent sell-off in AI-related shares has raised questions about the durability of the trade, some strategists see it as a reset rather than a sign of deteriorating fundamentals. “The long-term AI backdrop appears to be intact,” said Adam Turnquist at LPL Financial.
“The recent correction appears more consistent with a healthy reset following a parabolic advance than a fundamental breakdown in the AI investment theme.” BLOOMBERG
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