Asian stocks rise, with tech shares leading gains

Asian technology and semiconductor stocks gained, lifting benchmarks

Most Asian stocks rose on Tuesday, with technology shares leading gains as investors kept a close watch on Middle East tensions and a busy week of central bank decisions.

The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.10% in a closely split 5-4 decision on Tuesday, highlighting growing concern among policymakers that inflation could remain above target for longer.

The central bank flagged rising fuel costs linked to the Middle East war as a key upside risk to inflation, reinforcing expectations that policy may need to remain restrictive.

S&P/ASX 200 index traded 0.2% higher after the decision.

Asian technology and semiconductor stocks gained, lifting benchmarks.

KOSPI outperformed, climbing almost 3%, with Samsung Electronics shares jumping almost 5%.

Nikkei 225 added 0.5%, while the broader TOPIX index added 1.1%.

Shanghai Composite edged 0.4% higher, while the blue-chip Shanghai Shenzhen CSI 300 index rose 0.7%. Hang Seng index traded 1.1% higher.

Straits Times Index added 1.2%, while Nifty 50 edged 0.1% lower.

However, gains were capped as investors continued to monitor escalating tensions in the Middle East. The war involving the U.S., Israel and Iran has entered its third week, raising concerns over disruptions to global energy supplies.

Oil prices remained higher, with Brent crude holding above $100 per barrel on Tuesday after pulling back slightly on Monday.

Prices have surged in recent weeks as the war threatened shipments through the Strait of Hormuz, a critical route for global oil trade.

Persistently high oil prices have also fuelled concerns that inflationary pressures could remain higher, complicating the outlook for monetary policies of countries across the world.