Asian markets advanced on Tuesday, led by a rebound in technology stocks and growing expectations that the Federal Reserve will cut interest rates in December, boosting overall risk appetite.
The Hang Seng Index climbed 1.2% and South Korea’s KOSPI added 0.9%, following optimism surrounding Google’s new AI model and reports that the company is developing its own AI chips. After a month of steep declines, investors rotated back into beaten-down tech and growth shares.
Mainland Chinese markets also gained, with the CSI 300 up 1.4% and the Shanghai Composite rising 1.2%, supported by semiconductor and AI-related stocks. Alibaba rose nearly 3% ahead of its earnings report, with early data showing solid performance from its Qwen AI platform.
However, tensions between China and Japan and renewed fiscal concerns capped gains. Japan’s Nikkei 225 edged up 0.6%, while the TOPIX was flat, weighed down by declines in travel and entertainment stocks after widespread flight cancellations in China.
Elsewhere, Australia’s ASX 200 and Singapore’s Straits Times Index dipped slightly, while India’s Nifty 50 futures pointed to a flat open.
Traders remain focused on a series of delayed U.S. economic reports—including GDP, PCE inflation, and employment data—that are expected to guide the Fed’s final policy decision of the year.