Asian Markets Climb as Wall Street Hits New Highs

Asian shares advanced on Tuesday, following gains on Wall Street and a slight dip in oil prices. The S&P 500 climbed 0.6% to a record high, extending its 23% rally since late March. The Dow Jones Industrial Average added 253 points, or 0.5%, while the Nasdaq composite rose 0.4%, building on its own all-time high from the previous day. Despite concerns over war, high inflation, and rising bond yields, corporate profits have remained strong, supporting stock prices.

Companies like Lamb Weston, which sells frozen fries and other potato products, reported better-than-expected profits and revenue for the latest quarter. CEO Mike Smith noted unexpected increases in freight and other expenses but raised the company’s forecast for full-year profit. Analysts expect S&P 500 companies to deliver nearly 30% earnings growth from a year earlier, marking the third straight quarter of growth above 25%. This strength in corporate profits is helping stocks maintain high levels despite rising bond yields.

AI-related stocks, such as Nvidia and Constellation Energy, have been major drivers of the market’s gains. Nvidia’s stock surged 28.3% this year, while Constellation Energy jumped 12.2% after announcing a deal to supply Google with electricity for AI data centers. Option Care Health soared 32.6% following news of a $5.8 billion acquisition by CD&R and McKesson.

Bond yields eased slightly, with the 10-year Treasury yield falling to 5.28% from 5.31%. Oil prices also steadied, with Brent crude settling at $100.58 after earlier dropping to $97. In Asia, Japan’s Nikkei 225 rose 1.1%, and Hong Kong’s Hang Seng climbed 1%, though South Korea’s Kospi fell 0.9%.