Asian Markets Rebound as Chip Stocks Recover and Oil Eases
Asian markets were broadly firmer on Tuesday as investors balanced escalating Middle East tensions against a rebound in technology stocks.
Brent crude fell around 0.7% to about US$88.50 a barrel in early trading, easing after a sharp rally that has lifted prices by roughly a fifth this month.
Oil markets remain focused on the conflict between the US and Iran, with both sides exchanging strikes for a tenth consecutive day.
Washington has targeted Iranian military infrastructure, while Tehran has launched attacks on US-linked sites across the Gulf.
Shipping routes also remain under threat, with Houthi militants warning of further disruption in the Red Sea, although diplomatic efforts are continuing around a possible temporary ceasefire.
Despite the geopolitical risks, sentiment across Asia improved as chipmakers recovered from recent selling linked to concerns over artificial intelligence valuations.
The MSCI Asia Pacific index rose around 2.2%, snapping a three-day losing streak.
Markets in South Korea and Taiwan, both closely watched as indicators of global AI and semiconductor demand, climbed roughly 4%.
Japan’s Nikkei 225 gained 2.7%, led by technology stocks, while Nasdaq 100 futures rose around 1%.
In China, a technology-heavy index jumped nearly 7% as state-backed institutions moved to support markets, with Hong Kong equities also pushing higher.
Currency markets remained sensitive to UK political developments, with sterling under pressure after Prime Minister Andy Burnham named former defence secretary John Healey as chancellor.
The appointment has fuelled expectations of higher defence spending, although Healey has also stressed the importance of fiscal discipline.
