Most Asian stock markets moved higher on Tuesday, with advances concentrated in technology names after Wall Street rallied overnight. Investors credited strong sentiment emanating from Nvidia’s annual developer event, yet remained cautious amid continued conflict in the Middle East and a week packed with central bank decisions.
Regional markets took direction from a firmer close on Wall Street where optimism around Nvidia and related chipmakers supported technology shares. U.S. stock index futures were slightly lower in Asian hours on Tuesday.
Technology-led gains
Nvidia's (NASDAQ:NVDA) Chief Executive Jensen Huang unveiled new artificial-intelligence systems and components at the company's GTC conference, a development that bolstered sentiment toward chipmakers and the broader technology sector. That momentum carried across Asia where semiconductor and technology stocks outperformed, lifting major regional benchmarks.
South Korea's KOSPI led regional gains, rising nearly 3%, with Samsung Electronics (KS:005930) shares climbing nearly 5%. Japan's Nikkei 225 advanced 0.5%, while the broader TOPIX index increased by 1.1%. Mainland China benchmarks also rose, with the Shanghai Composite up 0.4% and the blue-chip Shanghai Shenzhen CSI 300 gaining 0.7%. Hong Kong's Hang Seng traded 1.1% higher. Singapore's Straits Times Index improved by 1.2%, while futures linked to India's Nifty 50 moved slightly lower.
Geopolitical developments and oil prices
Market participants kept a close watch on tensions across the Middle East, as the conflict involving the U.S., Israel and Iran moved into its third week. Concerns that the fighting could disrupt global energy supplies have kept oil prices elevated. Brent crude remained above $100 per barrel on Tuesday after a modest retreat on Monday. Prices have risen in recent weeks amid threats to shipments through the Strait of Hormuz, a key artery for oil trade. Continued high oil prices have also raised worries that inflationary pressures may stay elevated, a factor that complicates the outlook for global monetary policy.
Central bank calendars in focus
Investors were also focused on monetary policy decisions due this week. The Reserve Bank of Australia was expected to announce its interest-rate decision later on Tuesday, with economists widely anticipating a 25 basis point rise in the cash rate as policymakers seek to rein in inflation and respond to rising energy costs. Australia's S&P/ASX 200 index traded largely flat ahead of the announcement.
Following the RBA decision, the Federal Reserve is scheduled to deliver its policy decision on Wednesday, and the Bank of Japan is set to conclude its meeting on March 19. Market participants are looking for guidance from these meetings on the likely trajectory of interest rates as policymakers weigh persistent inflationary risks linked to surging oil prices.
Outlook
While technology and semiconductor sectors led gains across the region, geopolitical risks and upcoming central bank decisions provided countervailing forces that capped upside. Traders remained sensitive to developments that could alter energy markets or shift the path of monetary policy, keeping market momentum subject to change.