- South Korea’s Kospi jumped 4.3%, and Japan’s Nikkei gained 2.8% in Tuesday trade.
- Taiwan regulators cut the short-selling limit to 3% from 30% and lifted margins.
- Brent crude fell 1% to $91 a barrel, its weakest level since early September.
Asian shares climbed on Tuesday as chipmakers recovered from a brutal week and cheaper oil eased worries about interest rates ahead of a closely watched US inflation reading.
MSCI’s Asia-Pacific index rose 1.78%, moving further from a seven-month low set last week. South Korea’s Kospi jumped 4%, Japan’s Nikkei added 2.8% and the Topix 2.2%. Australia’s ASX 200 gained 1.1%, Singapore’s STI 1.6% and New Zealand’s NZX 50 about 1%, while India’s Nifty 50 futures were flat.
Chips Lead the Bounce
- Korea: SK Hynix rose 6.3% and Samsung Electronics 4.9%. LG Innotek added 5.1%.
- Japan: Kioxia climbed 6.6%, Murata 5.9% and TDK 5.2%, while Sony slipped 0.4%.
- Taiwan: Largan rose 5.6%, TSMC 0.9% and Foxconn 0.5%.
The Taiex surged as much as 6.4%, ending a seven-session slide, its longest since 2022. Regulators cut the short-selling limit to 3% of 30-day average volume from 30% and lifted margin requirements to 130% from 90%. Korea’s benchmark had sat more than 40% below its summer peak before the bounce.
Wall Street Handoff
On Monday, the S&P 500 rose 2.35%, its best day since April. The Nasdaq Composite gained 2.7%, the Nasdaq 100 3.4%, the Dow 2.15% and the Philadelphia Semiconductor Index 6.9%. CoreWeave reports earnings this week.
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Nvidia Stays in Focus
Nvidia fell about 4.2% on Monday even as the broader market surged. Its board is examining whether chief executive Jensen Huang was targeted by foreign intelligence, after a media report alleged ties to a Chinese businesswoman who passed information to Beijing.
Huang has said he was unfaithful to his wife without giving details, and the board sees no reason to think company secrets were compromised. Earnings are due next week.
Oil, Rates and Inflation
Brent crude oil fell 1.31% to $91 a barrel, its lowest since early September, after President Donald Trump signaled he would hold off on new strikes on Iran while talks progress.
October US consumer prices are due later Tuesday. Economists polled expect headline inflation of 0.3% and core of 0.2%. CME FedWatch shows an 84% chance of a Fed hike next month, up from 74% a week ago after strong jobs data. The war with Iran, which began in February, has stoked inflation fears and pushed central banks into rate rises.
The two-year Treasury yield rose 1.4 basis points to 4.56%, and the dollar was steady.
The rebound across Asian markets reflects renewed optimism following last week’s sharp sell-off, supported by a recovery in chip stocks and easing oil prices. However, persistent inflation concerns, elevated interest-rate expectations, and geopolitical uncertainty could limit further gains. Investors will now look to the US CPI report for clues about the Federal Reserve’s next policy move.
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Related: Trump Meets Qatar PM as Iran Diplomacy Stalls: Why Oil and Bitcoin Traders Should Watch
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