Asian Stocks Show Modest Gains Amidst Interest Rate Speculation
Asian Markets Recovering with Caution
Most Asian stocks advanced on Tuesday as they recouped some losses from last week, although anticipation of key inflation readings and more cues on U.S. interest rates kept gains in check.
A flat overnight close on Wall Street also provided middling cues to Asian markets, as investors remained wary of making big bets ahead of more cues on interest rates. U.S. stock index futures moved little in Asian trade.
Focus was largely on U.S. data for more cues on interest rates, especially as a blowout report saw traders begin pricing out expectations for a June rate cut.
Most Asian stocks were nursing steep losses from last week, as growing fears of higher-for-longer U.S. rates sparked widespread selling in risk-driven assets.
Taiwan Stocks Surge on TSMC Subsidy
The Taiwan stock market was the best performer in Asia on Tuesday, rising over 1% on strong gains in chipmaker TSMC, the biggest stock on the index.
TSMC surged nearly 4% to a record high after winning a $6.6 billion subsidy from the U.S. government to build a nearly $12 billion, advanced chipmaking plant in Arizona.
Chinese and Hong Kong Markets React Differently
China’s indexes lagged their regional peers for a second straight session, while Hong Kong’s index outperformed, rising 0.7% after promises of support from local authorities.
More Chinese economic cues are on tap this week, with data due on Thursday and Friday, respectively.
Japanese Market Sees Recovery
Japanese stocks extended a recent rebound on Tuesday, with the Nikkei index rising 0.6%, while the broader TOPIX added 0.3%.
The yen softened this week, creeping back towards lows hit in 1990 as traders grew bolder that the Japanese government will not act on its warnings of intervening in currency markets.
Other Asian Markets Show Mixed Results
Broader Asian stocks either rose marginally or tread water. Australia’s index added 0.4%, even as data showed consumer sentiment worsened in April.
South Korea’s market fell 0.3%, with a Bank of Korea meeting on tap later this week.
Futures for India’s index pointed to a flat open, with the index open to some profit-taking after closing at a record high on Monday.
