Key facts
- Asian stocks rose Tuesday, led by technology shares.
- Lower oil prices and optimism surrounding potential US-Iran talks boosted sentiment.
- The US dollar strengthened against the yen and other currencies.
- Investors anticipate a meeting between US President Donald Trump and Chinese President Xi Jinping.
- Brent crude futures steadied around $100.22 a barrel.
- Meta's new AI assistant, Muse, has injected confidence into demand for central processing units.
Asian markets advanced on Tuesday, with technology stocks leading the gains as lower oil prices and optimism surrounding potential US-Iran talks lifted investor sentiment. The US dollar strengthened, driven by expectations that major central banks, including the Federal Reserve, will continue to raise interest rates to combat inflation.
Investors are closely watching for signs of de-escalation in US-China relations ahead of a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping later this week. Optimism that a trade truce could be extended and potential cooperation on artificial intelligence are supporting market sentiment.
Brent crude futures steadied around $100.22 a barrel after a significant drop in the previous session. President Trump indicated openness to meeting with Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly in New York.
The excitement around Meta's new AI assistant, Muse, has injected confidence into demand for central processing units and contributed to the rally in AI-related stocks across China and Hong Kong. Tech-heavy markets in South Korea and Taiwan also saw substantial gains.
However, the broader market sentiment is tempered by hawkish signals from central banks. The Bank of Japan recently raised interest rates but provided no explicit hawkish guidance, leaving the yen vulnerable. The Federal Reserve, meanwhile, has signaled that its fight against inflation is ongoing, keeping the door open for further tightening and underpinning the dollar's strength.