Asian markets continued their recovery for a second consecutive day, with MSCI's Asia Pacific equities gauge rising 1.2%, extending Tuesday's biggest one-day gain in a month, according to CNBC TV18. The Kospi Index jumped more than 5%, reflecting renewed optimism in AI investment as semiconductor chipmakers at the heart of the artificial intelligence boom extended their rebound. The rally followed the Nasdaq 100's best session in more than three weeks, with a 5.2% surge in a key semiconductor gauge signaling renewed demand for beaten-down chipmakers. Nvidia Corp. said its latest chip designs are now reaching customers, while Intel Corp. shares rose on plans for further job cuts, adding to the positive sentiment across the technology sector. After the US close, Super Micro Computer Inc. surged following an update that pointed to a growing order backlog, while Taiwan Semiconductor Manufacturing Co.'s American depositary receipts climbed 5.5% after the Nikkei reported the company is set to raise prices by up to 10%.
Japanese markets staged a remarkable recovery on Tuesday, with the Nikkei 225 advancing 3.26% to close at 66,232.19 and the Topix climbing 2.44% to 4,014.95, according to The Economic Times. The rebound came as markets reopened after a holiday and investors seized on bargains following the gauge's steepest weekly selloff in more than a year. The recovery reflects bargain hunting activity after the severe selloff that had pushed the Nikkei 225 down 6.4% for the week and the Topix down 2.9%. Market breadth was overwhelmingly positive, with 187 advancers on the Nikkei 225 against 37 decliners and one unchanged, as reported by The Economic Times.
Technology stocks led the market higher as selling pressure on semiconductor and artificial intelligence-related companies eased, with Kioxia Holdings jumping 17.2% and Advantest gaining 7.7%, according to Business Standard. Other notable performers included Taiyo Yuden rising 6.4%, SoftBank Group advancing 6%, and Tokyo Electron adding 2.3%. The improvement followed overnight gains in US chipmakers, which lifted sentiment across the sector. Financial and consumer stocks also posted solid gains, with Mitsubishi UFJ climbing 3.1%, Sumitomo Mitsui rising 3.4%, and Fast Retailing gaining 2.5%, as reported by Business Standard. Gold edged up 0.5% to almost $4,100 an ounce, while silver climbed 0.3% to just below $59.
The yen slid past 163 per dollar for the first time since 1986, increasingly testing Japanese authorities' resolve to intervene, according to The Economic Times. Crude oil prices climbed, with Brent advancing 1.4% to about $92.43 a barrel following US President Donald Trump's indication that there was no immediate prospect for talks with Iran, hinting at further restraint in global oil supply. Treasuries held their losses, which pushed 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. Attention is also on pharmaceutical companies after Trump announced plans to impose 100% tariff on generic drugs imported to the US, beginning in August 2028.
Market participants are now shifting their focus to the upcoming second-quarter earnings season, with results from major U.S. technology companies including Alphabet, Tesla, and Intel expected starting Wednesday, as reported by The Economic Times. Nearly 20% of companies in the S&P 500 by market value are slated to report results this week, with Alphabet and Intel giving investors a clearer read on how AI spending is reshaping the tech industry. Intel reports Thursday. US earnings growth should continue to support stocks in the second half of the year, even as near-term bullish positioning and macro headwinds weigh on share prices, according to Goldman Sachs Group Inc. strategists. Despite the strong rebound, investors remained cautious as tensions in the Middle East continued to push oil prices higher, raising concerns about inflation and the possibility of further interest rate hikes. Analysts noted that Tuesday's gains largely reflected a technical rebound after the sharp selloff, while upcoming earnings announcements in Japan and the U.S., particularly from major names, are likely to resolve some of this weakness in AI-related shares.
