Asian stocks today: Markets mostly gain after Wall Street’s strong rally; HSI adds 1%, Nikkei jumps 300 points
Asian stock markets mostly rose on Tuesday as investors took confidence from a record-setting start to the year on Wall Street, where AI-led technology stocks continued to boost investor sentiment.In Hong Kong, HSI added 448 points or 1.7% to 26,795. Nikkei also traded higher, gaining 358 points or 0.69%. Shanghai and Shenzhen also surged 1% and 0.7% respectively. In South Korea, Kospi traded flat with a gain of 6 points around 9:05 AM IST. Oil prices also stabilised after sharp swings linked to political developments in Venezuela. Alongside the global equity rally, attention is shifting to the United States, where a series of economic indicators due this week could shape expectations around the Federal Reserve’s next interest rate decision, which is scheduled for later this month. Market participants brushed aside the surprise US operation in Caracas over the weekend, where Venezuelan President Nicolas Maduro and his wife were flown to New York to face drug charges. In the US, Dow Jones Industrial Average soared to a new closing high, supported by strong performances from major technology firms including Amazon and Meta, as well as energy companies. The S&P 500 and Nasdaq also ended higher. Gains were reinforced by fresh data showing US manufacturing activity contracted for the tenth straight month in December, a trend that could give the Federal Reserve additional scope to cut interest rates. Investors are now awaiting upcoming employment data, which may further influence the central bank’s policy stance, despite indications last month that it could pause easing. In Asia, Hyundai shares initially surged after the South Korean carmaker showcased a prototype of its humanoid robot, Atlas, at the Consumer Electronics Show in Las Vegas, but the stock later trimmed those gains. The company said the AI-powered robot is expected to begin operations at a US manufacturing facility by 2028. Australian equities edged lower, even as BlueScope Steel jumped more than 20% after announcing it was reviewing a US$8.8 billion joint takeover proposal from a US-based rival and a diversified Australian firm. In energy markets, oil prices dipped after rising 1.7% on Monday as investors weighed the potential impact of Venezuela’s political upheaval. While the country holds roughly one-fifth of the world’s oil reserves, analysts noted that any rapid increase in supply would be constrained by ageing infrastructure, low prices and ongoing political uncertainty, even as global markets grapple with an existing supply glut.
