Asian stock indexes posted modest gains on Tuesday, reflecting the spillover of a technology‑led rally that propelled the U.S. Nasdaq to a historic close. The MSCI broadest index of Asia‑Pacific shares outside Japan rose 0.2%, while Japan’s Nikkei added 0.7%.
Tech momentum fuels market optimism
AI heavyweight Nvidia led the charge, climbing 2.1% to close at a record high and pushing its market value to $5.76 trillion. “The rally in the market was tech led once again, with the marginal easing of interest‑rate uncertainty along with a slight moderation in geopolitical risk allowing market participants to focus on the extraordinary earnings growth being delivered by AI names,” said Kyle Rodda, senior analyst at Capital.com.
Nasdaq futures edged up 0.2% and S&P 500 futures rose 0.1% after softer‑than‑expected jobs data dampened expectations for a Federal Reserve rate hike this month. Goldman Sachs estimates that consensus forecasts point to a 27% growth in S&P 500 earnings for the quarter, with more than half of that growth coming from companies benefiting from AI infrastructure spending.
European fiscal worries and currency moves
The euro lingered near a 17‑month low after briefly touching $1.116, pressured by mounting fiscal concerns in France. Investors dumped French government bonds following an underwhelming budget, and political uncertainty deepened after Spanish Prime Minister Pedro Sanchez called a snap election.
French‑German yield spreads narrowed slightly, with the premium on French 10‑year bonds over German debt falling to 137 basis points. The euro later traded at $1.1215, its weakest level since May 2025.
Oil and Treasury yields
Brent crude held steady at $100 a barrel after a 1.9% dip overnight, as Middle‑East exports rose and the Group of Seven pledged to boost supplies.
U.S. Treasury yields continued their climb, with the 10‑year yield steady in Asia at 5.3089% after reaching 5.3493%—the highest level since 2002. The 30‑year yield held at 5.6622% after briefly touching 5.7029% overnight, marking fresh 24‑year highs. The market’s probability of a Fed rate hike this month fell to 23% from 71% a week earlier, reflecting policymakers’ call for more data before tightening again.
Latin American markets
Latin American equities also rose, led by a rally in Brazilian stocks and the real after right‑wing Senator Flavio Bolsonaro outperformed poll predictions in Brazil’s first‑round presidential election, advancing to a runoff against incumbent Luiz Inácio Lula da Silva.
Overall, the combination of a tech‑driven equity rally, easing expectations for near‑term U.S. rate hikes, and steady commodity prices provided a supportive backdrop for global markets, even as fiscal challenges in Europe and high Treasury yields remind investors of lingering uncertainties.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
