Pedestrians crossing the street at night in Hong Kong, China Nathan Road
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Asia-Pacific markets advanced on Tuesday as traders shrugged off geopolitical hotspots in Iran and Venezuela, as well as the criminal investigation into US Federal Reserve Chairman Jerome Powell.
Japan’s benchmark Nikkei 225 index jumped 3.4%, leading gains in the region after resuming trading after a holiday, while the Topix rose 2.13%. Japan’s ruling Liberal Democratic Party is expected to dissolve the country’s Lower House later this month and opt for early elections likely in February, according to public broadcaster NHK.
The heavyweights of the index SoftBank advanced up to 5%, while Avantest And Tokyo Electron jumped 8.99% and 8.31%, respectively.
Yields on 10-year Japanese government bonds rose more than 5 basis points to 2.15%, while yields on 20-year bonds jumped more than 8 basis points to 3.137%.
The Japanese yen weakened slightly to a one-year low of 158.25 per dollar.
South Korea’s Kospi added 0.62%, while the small-cap Kosdaq fell 0.30%.
Traders will also be closely watching oil prices amid the ongoing protests in Iran. President Donald Trump is reportedly weighing options for intervention in Iran, according to multiple reports Sunday.
Trump, in an article published Monday by Truth Social in the United States, said any country doing business with Iran would face 25 percent tariffs “on all business done with the United States of America.” This new tariff on imports from Iran’s trading partners comes into effect “immediately.”
Brent crude futures rose 1.52% to $64.3 per barrel, while West Texas Intermediate United States crude gained 0.44% to $59.76 as of 7:34 a.m. Singapore time (6:34 p.m. EST Sunday).
Australia’s S&P/ASX 200 added 0.68%.
that of Hong Kong Hang Seng Index rose 1.25%, while the CSI 300 was stable at the open. Shares of Chinese semiconductor company GigaDevice Semiconductor jumped nearly 50% in its Hong Kong debut on Tuesday. The company raised HK$4.68 billion ($600 million) in an offering priced at HK$162 per share.
U.S. stock futures were flat in early Asian hours, ahead of U.S. consumer inflation data and major bank earnings results.
Overnight in the United States, stocks rebounded from session lows, with the S&P 500 and Dow Jones Industrial Average hitting new all-time highs.
The S&P 500 rose 0.16% to finish at 6,977.27, while the Dow Jones Industrial Average rose 86.13 points, or 0.17%, and settled at 49,590.20. Both indices hit new all-time intraday highs and closed at record highs. The Nasdaq Composite rose 0.26% and closed at 23,733.90.
— CNBC’s Sean Conlon, Yun Li and John Melloy contributed to this report.
