Asian markets experienced gains on Tuesday, buoyed by the previous day’s upward movement on Wall Street, which was fueled by U.S. economic indicators that reduced concerns about an impending downturn. Meanwhile, Chinese technology companies played a significant role in driving up indices in Hong Kong.
Traders began the week on an optimistic note following Beijing's announcement over the weekend of various initiatives designed to boost consumer activity across China.
The following Monday brought data indicating that a crucial indicator of U.S. retail sales exceeded expectations in February, implying that previous worries regarding a potential economic slowdown in the world’s leading economy might have been exaggerated.
Nevertheless, despite the lack of fresh updates recently, investors remain concerned about the effects of Donald Trump's trade conflict on worldwide economic expansion.
Hong Kong, which has surged by over 20% since the start of the year, topped the gainers list on Tuesday due to additional purchases of Chinese technology companies.
Once again, Alibaba, Tencent, and JD.com led the way, but electric vehicle manufacturer BYD was also a significant victor — surging over six percent to reach an all-time peak — following the announcement of its new battery tech capable of charging in just five minutes.
Alongside Tokyo, Sydney, Seoul, Singapore, Taipei, and Manila, Shanghai experienced significant growth as well.
Following two consecutive days of increases on Wall Street, which had faced significant losses this month due to selling pressure initiated by Trump's tariff actions, concerns have grown about potential escalation in U.S. inflation and adverse impacts on economic conditions.
Nevertheless, Stephen Innes from SPI Asset Management cautioned investors against becoming complacent, as new tariffs on US trading partners were set to take effect as early as April 1st.
He penned in an opinion piece, 'Don’t settle in just yet — anxious observers continue to watch Washington’s chaotic tariffr turmoil.'
The storm shows no signs of abating, and as the potential for further escalation looms, the market remains teetering precariously between hopefulness and yet another harsh dose of reality.
Doubts regarding the effect of the tariffs contributed to gold acting as a safe haven, reaching a new high of $3,008.53 during early trading on Tuesday.
This week is expected to feature policy decisions from the Federal Reserve, Bank of Japan, and Bank of England, with all three likely to keep their interest rates unchanged.
The statement from the U.S. central bank will include revisions to their economic forecast and interest rate predictions for the year, taking into account factors such as Trump's trade policies, tax cuts, changes in immigration rules, and modifications to federal employment roles.
Ryan Wang, an economist at HSBC based in the U.S., stated, "We anticipate minimal alterations in the forthcoming guidance regarding policy rates within the revised (policy committee) statement."
The statement might reaffirm that the risks to (its) employment and inflation objectives are nearly evenly balanced, and that the 'economic outlook remains uncertain.'
Nevertheless, he mentioned that although he observed no significant adjustments to the bank's central economic forecast, "the modifications we anticipate will be in a more negative direction."
Key individuals at approximately 0230 GMT
Tokyo - Nikkei 225: Increased by 1.5 percent to reach 37,943.23
Hong Kong - Hang Seng Index: Increased by 1.9 percent to reach 24,599.48
Shanghai - Aggregate: Increased by 0.2% to reach 3,432.30
Euro/dollar: FALLS to $1.0911 from $1.0925 on Monday
Pound/dollar: FALLING to $1.2977 from $1.2990
Dollar/Yen: Increased to 149.51 yen from 149.12 yen.
Euro/pound: Increased to 84.08 pence from 84.07 pence
West Texas Intermediate: Increased by 0.3% to reach $67.75 per barrel.
Brent North Sea Crude: Increased by 0.3% to $71.25 per barrel
New York - Dow: Increased by 0.9 percent to close at 41,841.63.
London - FTSE 100: Increased by 0.6 percent to close at 8,680.29.