Investing.com — Asian stocks were mostly higher on Tuesday as regional technology stocks tracked overnight gains on Wall Street, while Chinese markets lagged after the U.S. added two major technology companies to a blacklist.
Regional markets received positive signals from a strong overnight session on Wall Street, as technology stocks rebounded from a weak start to the year. NVIDIA Corporation’s (NASDAQ:) darling AI was an outstanding performer, hitting a record high in anticipation of CEO Jensen Huang’s speech at the Consumer Electronics Show in Las Vegas.
US stock index futures were slightly positive in Asian trading, with focus remaining on key data due later in the week.
But despite Tuesday’s gains, most Asian markets are still suffering from a weak start to 2025, amid lingering concerns about US interest rates remaining high for longer.
Asian technology stocks track US gains. Nvidia in focus
High-tech bourses were the best performers in Asia on Tuesday, with Japan’s index rising 2.4%, while South Korea’s index added 0.9%.
The Japanese index rose 1%.
Technology stocks rose, tracking their American counterparts, which was supported by a mixture of hype around artificial intelligence, in addition to some buying after recording losses during the month of December.
Nvidia’s Huang is widely expected to provide more details about the company’s upcoming Blackwell AI chips, while any comments about demand for AI will also be closely watched.
AI has been a major support point for the technology sector over the past year, with chipmakers benefiting from increased capital spending in the sector, while software companies raced to introduce their own AI offerings.
Chinese stocks decline after Tencent and CATL were added to the US blacklist
China’s indices and indices moved in a narrow range, while Hong Kong’s index fell 0.5%.
The Hang Seng Index was mainly affected by losses in internet giant Tencent Holdings Ltd (HK:) and battery supplier Tesla (NASDAQ:) Contemporary Amperex Technology Co Ltd (SZ:), both of which lost more than 5%.
The two companies were added to the US blacklist of companies with ties to the Chinese military. While the blacklisting does not involve any direct restrictions on companies, it does create hurdles in doing business with US companies – which represents a key market for both Tencent and CATL.
The new additions to the blacklist also raised concerns about deteriorating trade relations between the world’s largest economies, which are expected to worsen amid increased trade tariffs under incoming US President Donald Trump.
Trump on Monday denied reports that his administration would impose trade tariffs that were less stringent than he initially indicated.
The renewed trade war does not bode well for China and other Asian economies.
Broader Asian markets were mostly positive. Australia’s index rose 0.2%, while Singapore’s index rose 0.1%.
The Indian index indicated a somewhat positive opening, after the index fell by 1.6% on Monday. Weak profits from heavyweight companies in the index HDFC BANK LIMITED (NS:) and Dabur India Ltd. (NS:) has eroded sentiment, especially ahead of more profits from major Indian companies, which are set to materialize in the coming days.
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