Asian stocks rise as tech surges on AI hype; Inflation remains in focus
Investing.com-- Most Asian stocks rose on Tuesday as regional technology shares surged amid renewed optimism over artificial intelligence, while focus remained on a slew of upcoming inflation reports for more cues on interest rate cuts this year.
Regional markets recovered from a rough start to 2024, having mostly fallen for the past five sessions as markets second-guessed expectations for early interest rate cuts by the Federal Reserve.
U.S. inflation data due later this week is expected to provide more cues on the matter.
Regional inflation readings offered some positive cues. Japan’s Nikkei 225 index surged 1.4% after a long weekend, as data showed inflation in Tokyo — which acts as a bellwether for the country- fell as expected in December, and was now within spitting distance of the Bank of Japan’s annual 2% target.
While a devastating earthquake in central Japan somewhat dented sentiment towards the country, it also sparked some bets that the BOJ will have to delay plans to end its ultra-dovish policies in the face of rebuilding efforts after the disaster.
Gains in heavyweight technology stocks also boosted the Nikkei, particularly those with exposure to artificial intelligence. Chip testing equipment maker Advantest Corp. (TYO:6857) surged nearly 7% and was among the top performers on the Nikkei.
Hong Kong’s Hang Seng index shot up 1% on strength in technology stocks, with PC maker Lenovo Group (HK:0992) rallying 6.1% after it unveiled over 40 new devices and products powered by AI at the Consumer Electronics Show.
Hype over AI came back into play after chipmaker NVIDIA Corporation (NASDAQ:NVDA)- which is at the heart of an AI-fuelled rally in 2023- surged over 6% to record highs on Monday, as New Street Research
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