Investing.com — Most Asian stocks rose modestly on Tuesday on expectations of important U.S. inflation data, while Japanese stocks hit a 34-year high on strong results from the technology sector and dovish signals from the Bank of Japan. rose to
Regional stocks got mixed leads from Wall Street as the rally in U.S. stocks appears to be easing from record highs hit last week. , and futures each fell about 0.1% in Asian trading on Tuesday.
With markets in China and Hong Kong closed for a week, volumes in Asia remained relatively low and regional cues were lacking.
Dovish Bank of Japan, Nikkei Stock Average rises to 34-year high on high-tech corporate profits
The Nikkei Stock Average, a major outlier among its regional peers, rose 2.5% to a 34-year high on strong results from semiconductor makers and strong performance from major technology stocks. Tokyo Electron Ltd. (TYO:) and investment company SoftBank Group Corp. (TYO:).
Tokyo Electron soared nearly 11% to its highest level in nearly three years after posting higher profits in the December quarter as well as increased demand in China.
SoftBank rose 6.7% to its highest price in nearly three years, widening its gains after posting its first profit in five quarters.Stocks also tracked overnight gains in the semiconductor manufacturing sector. arm Holdings (NASDAQ:) U.S. shares soared 29% on Monday as hype continued over the company's prospects in the artificial intelligence boom.
The gains from the two tech giants spilled over into broader sectors. In addition, Bank of Japan Deputy Governor Shinichi Uchida said that although the Bank of Japan will raise interest rates this year, the pace is likely to be moderate, suggesting that the accommodative financial environment for domestic stocks will continue, and Japanese stocks will also rise. Spread it out.
The outlook for relatively low interest rates in Japan, following a series of dovish signals from the Bank of Japan, has been the main driver of the Nikkei's sharp rise over the past two years.
AI-driven gains in the chip manufacturing sector fueled strength in other Asian markets.South Korea increased by 1%, mainly due to the following factors: Samsung Electronics Co., Ltd. (KS:) And SK Hynix Co., Ltd. (KS:).
SK Hynix has fallen 4% after South Korean media reported that the company has partnered with Taiwan's TSMC (TW:) (NYSE:) to develop new AI chips, as more companies look to capitalize on the AI boom. It skyrocketed recently. TSMC, the world's largest chipmaker by volume, rose 1.7% in Taiwan trading.
Other Asian stocks were slightly positive, but major movements were limited due to the holiday in the Chinese market and expectations for US statistics. The data is expected to show that inflation eased in January but remains well above the Fed's annual target range, and there is little reason for the Fed to start cutting rates in this scenario.
Asian markets have been hit hard in recent weeks as hopes for an early rate cut by the Federal Reserve have waned.
Australia rose 0.1% as private surveys showed significant improvement by early February.
After falling 0.8% on Monday to its lowest in nearly two weeks, India index futures traded calmly, rising 0.4% to lead gains across Southeast Asia.