Asian stocks rose on Tuesday, tracking Wall Street's gains, which were boosted by a strong start to the earnings season led by the so-called Big Seven technology companies.
Stocks in Japan and South Korea rose, while Australian shares were flat. U.S. stock futures were little changed after the S&P 500 extended its late-month rally despite bets the Federal Reserve will keep interest rates higher for longer.
Japanese stocks led post-holiday gains as the yen climbed from a 34-year low against the dollar amid doubts about government intervention to support the currency. Stocks also got a boost from a rebound in factory output in a sign of improving manufacturing.
“While investors remain cautious about the extent of currency intervention, there appears to be a sense of relief as uncertainty over the yen’s depreciation eases,” said Rina Oshimo, chief strategist at Okasan Securities.
The yen swung wildly, rising more than 2% yesterday after earlier falling as much as 1.2% to 160.17 per dollar. That was the widest trading range since late 2022. The yen also held onto gains in early Asian trading.
Anticipating China's decision on the yuan
For other Asian countries, some traders are also looking at the possibility that China may need to take a sharp and highly controversial step to support its struggling economy, by devaluing the yuan sharply in one fell swoop. Markets in Beijing are due to be closed today until next week for the May Day holiday.
In the corporate sector, Samsung's earnings rose after its semiconductor business turned profitable for the first time since 2022, reflecting a global AI development boom.
Elsewhere, Tesla Inc.’s shares rose 15% after it won preliminary approval from Chinese officials to deploy its driver-assistance system in the world’s largest auto market. Apple Inc. shares rose on analysts’ expectations. Boeing Co. raised $10 billion in a bond sale that attracted $77 billion in orders.
