Asian shares mostly climbed, driven by a more than 10% surge in Tesla shares, which helped push US benchmarks to new records.
Japan’s benchmark Nikkei 225 increased by 0.9% to 40,425.27. Australia’s S&P/ASX 200 gained nearly 0.3% to 7,740.00. South Korea’s Kospi edged up nearly 0.1% to 2,782.42. Hong Kong’s Hang Seng added 0.9% to 17,924.43, while the Shanghai Composite fell by 0.3% to 2,989.51.
Asian investors were optimistic due to hopes for an interest rate cut in the US, though some traders remained cautious ahead of Thursday’s Independence Day holiday in the US.
In currency trading, the US dollar rose to 161.63 Japanese yen from 161.43 yen. The euro was relatively unchanged at $1.0747 compared to $1.0749.
On Wall Street, the S&P 500 added 0.6% to 5,509.01, surpassing its all-time high set two weeks ago. The Dow Jones Industrial Average rose 0.4% to 39,331.85, and the Nasdaq Composite increased by 0.8% to 18,028.76, breaking its record set a day earlier.
Tesla led the gains with a 10.2% jump after reporting a smaller-than-expected drop in spring sales. Modest gains in other major stocks also supported the market, including a 1.6% increase for Apple.
Stocks were buoyed by easing Treasury yields following comments from Federal Reserve Chairman Jerome Powell, which investors interpreted as signalling potential interest rate cuts later this year. Powell acknowledged improvements in inflation data after some high readings earlier in the year.
