Most Asian markets advanced on Tuesday, extending a global rally after Wall Street posted its first record of the year, as investors piled into artificial intelligence-linked technology stocks. Oil prices edged lower after volatile trading sparked by the ouster of Venezuelan President Nicolás Maduro, reports AFP.
Market attention is shifting back to US monetary policy, with a series of key economic data releases due this week that could influence Federal Reserve interest-rate decisions ahead of its meeting later this month.
Investors largely brushed aside geopolitical uncertainty following a surprise US raid on Caracas on Saturday that saw Maduro and his wife taken to New York to face drug trafficking charges.
Despite lingering concerns over stretched valuations in parts of the technology sector, analysts remain broadly optimistic about the outlook for equities this year, with artificial intelligence continuing to dominate investment themes.
“Global equities are likely to keep looking through geopolitical shocks unless they threaten supply chains or significantly tighten financial conditions,” said Charu Chanana, chief investment strategist at Saxo Markets. “Geopolitics has become a persistent feature rather than a surprise.”
“Equities can continue grinding higher if earnings expectations, liquidity and rate outlooks remain supportive, especially in tech,” she added.
That sentiment was reflected on Wall Street, where the Dow Jones Industrial Average closed at a fresh record, boosted by gains in major technology firms including Amazon and Meta, alongside energy stocks.
The S&P 500 and Nasdaq also rose after data showed US manufacturing activity contracted for a 10th straight month in December, reinforcing expectations that the Fed may have room to cut interest rates.
The figures come ahead of closely watched US jobs data due later this week, which could further strengthen the case for easing, even after the central bank signaled last month it might pause rate cuts.
In Asia, Hong Kong jumped more than one percent, while Tokyo, Shanghai, Singapore, Wellington, Taipei, Manila and Jakarta also posted solid gains. Seoul slipped after surging more than three percent on Monday.
South Korean automaker Hyundai rose but pared early gains of more than eight percent after unveiling a prototype humanoid robot, Atlas, at the Consumer Electronics Show in Las Vegas. The company said the AI-powered robot is expected to begin work at a US plant by 2028.
Sydney also edged lower, despite BlueScope Steel soaring more than 20 percent after announcing it was evaluating a US$8.8 billion joint takeover bid from a US rival and a diversified Australian firm.
Oil prices eased after rising 1.7 percent on Monday as traders weighed the implications of political developments in Venezuela. While the country holds around one-fifth of the world’s oil reserves, analysts cautioned that any rapid increase in output would be constrained by aging infrastructure, low prices and ongoing political uncertainty.
Bd-pratidin English/ Jisan
