Tech Rally Boosts Asian Markets as Oil Prices Steady
Asian markets gained momentum on Tuesday as technology stocks surged ahead of lower oil prices and investors pinned their hopes on US-Iran talks. Brent crude futures steadied at $100.22 per barrel, a crucial level that oil prices briefly dropped below in the previous session.
Nick Twidale, chief market strategist at ATFX Global, attributed the drop in oil to being 'a big factor' and said investors are jumping back into AI as has been the pattern this year.
The MSCI's broadest index of Asia-Pacific shares outside Japan rose over 1% in early trading, while tech-heavy South Korean stocks jumped nearly 2%. China's blue-chip stock index rose 0.75%, and Hong Kong's Hang Seng index gained 0.4%
Meanwhile, investors are contending with a fresh wave of rate hikes and hawkish signals from major central banks, reinforcing expectations of further tightening later this year.
The dollar stood tall on bets that more hikes are needed to rein in inflation, with the dollar index at 100.4, just shy of a seven-week high. Traders are pricing in a 56% chance of a hike in October, compared with 43.5% a week earlier, according to CME FedWatch tool.