Precise Investors Editorial Team
The MSCI Asia-Pacific Index jumped 1.7%, with chip giants as biggest contributors
Asian equities on Tuesday rose for the first time in four days as investors returned to chipmakers, driving a rebound in the sector after the recent sell-off, while oil declined.
The MSCI Asia-Pacific Index jumped 1.7%, with chip giant Samsung Electronics and Taiwan Semiconductor Manufacturing as the two biggest contributors.
Among the main moves across markets, Topix gained 1.8%, S&P/ASX 200 dropped 0.1%, Hang Seng declined 0.6% and the Shanghai Composite added 0.2%.
Benchmark gauges in South Korea and Taiwan both rose nearly 3%. Nikkei 225 Stock Average gained 1.7% after slipping into correction territory on Friday, as trading resumed following a long weekend.
Higher oil prices and escalating Middle East tensions are giving investors another reason for caution, adding to the rotation out of chip stocks after 2026’s blistering rally.
Investors are now turning to megacap earnings later this week for clues on whether this year’s artificial intelligence-driven rally can be sustained.
The market has already undergone a fairly substantial correction, said Ikuo Mitsui, a fund manager at Aizawa Securities. At the same time, corporate earnings have held up reasonably well and have proved more resilient than expected.
A brutal month for chip stocks has sharpened scrutiny of the AI spending wave, said Josh Gilbert, Asia-Pacific and Mideast lead analyst at Etoro.
Capital expenditure commentary will matter just as much as the headline numbers, he said.
If the megacap companies keep spending aggressively and can show revenue to back it up, the recent rotation out of tech is unlikely to persist, he said.
Elsewhere, the Canadian dollar held steady after the Trump administration vowed to impose a new 50% tariff on some of the country’s goods.
Gold jumped 0.5% to trade around $4,025 an ounce.
The New Zealand dollar advanced against its major peers after inflation data rose higher than expected, supporting the case for further interest rate hikes.
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