BANGKOK (AP) โ Asian stocks advanced Tuesday after Wall Street rallied to recoup almost all of the losses from its slow start to the year.
US futures fell while oil prices posted modest gains.
Tokyo's Nikkei 225 index gained 1.4% to 33,858.63 as the market reopened after a holiday on Monday.
Hong Kong's Hang Seng added 0.6% to 23,321.52, regaining some ground lost in recent declines. The Shanghai Composite Index rose 0.4% to 2,897.62.
South Korea's Kospi rose 0.4% to 2,577.12, while Australia's S&P/ASX 200 jumped 1.1% to 7,532.60.
Wall Street posted broad gains on Monday as easing Treasury yields eased pressure on the stock market. The rally was led by Big Tech stocks, the main driver of Wall Street's breakthrough last year, when enthusiasm around artificial intelligence technology made just a handful responsible for most of the returns. of the S&P 500. But they stumbled last week as markets retreated widely.
The S&P 500 jumped 1.4% to 4,763.54. It is back within 0.7% of its record and has regained momentum after posting its first week of losses in the last 10.
The Nasdaq composite rose 2.2% to 14,843.77, while the Dow Jones Industrial Average lagged the market with a 0.6% gain to 37,683.01.
Boeing dragged down the Dow Jones in its first trading after One of their planes suffered an explosion during flight. over Oregon. It fell 8%. Spirit AeroSystems, which makes airframes and other parts for Boeing, lost 11.1%.
Shares of oil and gas companies were also weighing heavily after Saudi Arabia signaled potentially weak demand for crude, cutting prices for its oil for February delivery. Exxon Mobil fell 1.7% and Marathon Oil lost 2.7% as a barrel of US crude fell $3.04 to $70.77.
โWeak demand fundamentals influenced this decision in the global physical oil market. "While the price cuts were widely anticipated, they turned out to be larger than analysts had anticipated," Stephen Innes of SPI Asset Management said in a commentary.
Nvidia rose 6.4% after announcing several AI-related products. Meanwhile, Apple rose 2.4% to recover from its worst week since September. They were the strongest forces driving the S&P 500, along with Microsoft, Amazon and Alphabet.
Commercial metals also rose 7.5% after reporting stronger final quarter earnings than analysts expected. He said construction activity is healthy in North America, boosting demand for steel and helping to offset weaker conditions in Europe.
More earnings results will come at the end of the week. Delta Air Lines, JPMorgan Chase and UnitedHealth Group will be among the companies that will begin the S&P 500 reporting season for the last three months of 2023 on Friday.
The highlight of the week may be Thursday's release of the latest inflation data for US consumers. A cooling there has ignited hope on Wall Street that the federal reserve will soon see enough improvements to not only stop its interest rate increases but also begin cutting them.
The Federal Reserve has already raised its main interest rate to the highest level since 2001, hurting the economy and hurting investment prices, in hopes of beating high inflation.
Treasury yields have already plunged in the bond market on such expectations, and dipped slightly on Monday. The 10-year Treasury yield fell to 4.01% from 4.05% late Friday. In October it was above 5%, its highest point since 2007 and put strong downward pressure on the stock market.
Critics also warn that traders may be too optimistic about how deeply the Federal Reserve could cut rates this year. The Federal Reserve has indicated the possibility of three cuts, but many traders anticipate at least six. A figure that large may not be likely unless a recession forces the Federal Reserve to intervene, critics say.
That's why there's a lot of focus on corporate earnings, where growth could help prop up stock prices.
Benchmark U.S. crude oil added 26 cents to $71.03 a barrel in electronic trading on the New York Mercantile Exchange. On Monday it lost $2.84, leaving it at $70.77 a barrel.
Brent crude oil, the international standard, gained 39 cents to $76.51 a barrel.
The US dollar fell to 143.59 Japanese yen from 144.23 yen. The euro rose to $1.0964 from $1.0949.
___
AP Business Writer Stan Choe contributed.
