Asian markets rise as US rally and rate-cut hopes lift sentiment
Asian shares mostly advanced on Tuesday, buoyed by a strong rebound on Wall Street and growing optimism that the US Federal Reserve could move towards an interest rate cut in the coming months.
Japan’s Nikkei 225 was little changed at 48,628.85 after reopening from a holiday, though sentiment was dampened by a sharp slump in SoftBank, which tumbled 10.3%. Investors grew nervous that the group’s heavy exposure to OpenAI could be challenged by Google’s newly launched Gemini 3 AI model, which has intensified competition in the artificial intelligence space.
Elsewhere in the region, South Korea’s Kospi rose 0.3% to 3,859.12, while Taiwan’s Taiex jumped 1.5%. Chinese markets also posted gains, with Hong Kong’s Hang Seng up 0.4% to 25,821.47 and the Shanghai Composite climbing 0.9% to 3,872.45.
Shares in Alibaba edged 1.6% higher ahead of its earnings report, expected later in the day.
In Australia, the S&P/ASX 200 eked out a modest 0.1% gain to 8,537.00, rebounding from recent weakness.
Wall Street powers the rally
The upbeat mood followed a strong session in the US, where stocks surged on renewed enthusiasm for artificial intelligence and rising expectations of a Fed rate cut in December. The S&P 500 climbed 1.55%, the Nasdaq Composite soared 2.69%, and the Dow Jones Industrial Average rose 0.44%.
Technology stocks led the charge. Alphabet surged 7.1% to a record $317.69 after Google unveiled Gemini 3, easing fears that it was falling behind OpenAI in the AI arms race.
Bond markets reflected the improving risk appetite, with US 10-year Treasury yields slipping two basis points to 4.05%, while UK 10-year gilt yields edged down to 4.54%.
