Asian investors extended the buying, with Tokyo and Taipei up more than 1%, while there were also healthy gains in Hong Kong, Shanghai, Sydney, Singapore, Seoul and Wellington
Asian equities rallied Tuesday, tracking another tech-driven high on Wall Street, while traders awaited fresh US economic data to get a better handle on the outlook for inflation.
With few major catalysts to drive business, the thoughts of Fed officials this week will be parsed for an idea about their plans for interest rates after lowering their guidance for how many cuts they would make in 2024.
Traders are also keeping an eye on developments in France, with concerns growing that a snap legislative election called by President Emmanuel Macron could see right-wing parties succeed and cause political turmoil in the EU.
The mood on trading floors was generally upbeat after the S&P 500 and Nasdaq hit more record closes due to continued buying of tech titans including Apple, Intel and Microsoft owing to optimism over AI.
And analysts were confident markets were well placed for more gains owing to the expected interest rate cuts and strong earnings.
Asian investors extended the buying, with Tokyo and Taipei up more than 1%, while there were also healthy gains in Hong Kong, Shanghai, Sydney, Singapore, Seoul and Wellington.
Investors will be keeping an eye on US retail sales, business inventories and industrial production figures Tuesday, which will provide the latest snapshot of the economy.
On Monday, Philadelphia Fed president Patrick Harker said he saw one rate cut in 2024 but would make his decision based on incoming data.
If all of it happens to be as forecasted, I think one rate cut would be appropriate by year’s end, Harker said in comments prepared for an event in Philadelphia.
He added: Indeed, I see two cuts, or none, for this year as quite possible if the data break one way or another. So, again, we will remain data-dependent.