Asian Markets Surge as U.S. Tech Rally Recovers Global Losses
Asian stocks climbed Tuesday following a U.S. market rally. SoftBank and chip giants lead gains as the Chinese trade surplus hits record highs.
POLICY WIRE — Tokyo, Japan — Asian equities saw significant gains on Tuesday, drawing momentum from a strong rally in United States markets that helped erase much of the losses seen during the previous week.
In Japan, the Nikkei 225 benchmark jumped by 2.6% to reach 60,279.37. A major driver for the index was SoftBank Group, an OpenAI investor which saw its shares soar by 15% ahead of its scheduled earnings report, recovering from a 1-year low hit on Monday.
The semiconductor equipment sector also performed well, with Tokyo Electron rising 5.6% and testing-firm Advantest gaining 3.4%. Meanwhile, South Korea’s Kospi surged 4% to 5,219.37, bolstered by a 4.6% increase in Samsung Electronics and a 5.6% climb for SK Hynix.
Other indices showed modest growth; Hong Kong’s Hang Seng rose 0.4% to 24,535.74, while the Shanghai Composite saw a 0.4% increase to 3,673.54. Customs data released Tuesday revealed that China’s exports grew by 35.2% year-over-year in October, with imports rising 41.6%.
These trade figures place China on a path for another record-breaking year, as the 2026 trade surplus has already surpassed the $1 trillion mark.
Australia’s S&P/ASX 200 gained 1.1% to 9,131.70, and Taiwan’s Taiex advanced by 3.4%.
On Monday, the U.S. S&P 500 rose 2.3%, marking its second consecutive day of gains despite fears that recent Democratic midterm victories might slow data center development. The Dow Jones Industrial Average climbed 2.2% and the Nasdaq rose 2.7%, hovering near their best performance since April.
U.S. equity gains were also supported by a drop in oil prices. President Donald Trump stated over the weekend that strikes on Iran are “highly unlikely” if diplomatic progress continues, while Secretary of State Marco Rubio previously described Iranian demands as “outrageous and ridiculous.”
Corporate earnings also fueled the market, notably with Constellation Energy jumping 10.5% after beating analyst expectations. However, the data center industry faces scrutiny following the election, as concerns exist that potential government regulations could limit AI-related spending.
Nvidia, central to the current AI boom, fell 4.3% following reports from The New York Times regarding CEO Jensen Huang’s relationship with an executive accused of gathering intelligence for China. Nvidia’s board stated they have “no reason to believe” that national security or proprietary secrets were compromised. Guo Jiakun, representing China’s Ministry of Foreign Affairs, dismissed the claims as “nothing but smears against China.”
In financial markets, a decline in Treasury yields over the past month lowered borrowing costs and supported investments. Brent fell 0.9% to $91.74 per barrel, while U.S. benchmark crude dropped 1% to $85.97. The U.S. dollar strengthened to 158.06 yen from 157.90, and the euro weakened to $1.1222 from $1.1266.
Reporting by Policy-Wire (PW)em>
