Investing.com-- Most Asian stocks rose on Tuesday as regional technology stocks tracked overnight gains on Wall Street, while Chinese markets lagged after the U.S. added two major tech companies to a blacklist.
Regional markets took positive cues from a strong overnight session on Wall Street, as technology stocks rebounded from a weak start to the year. Artificial intelligence darling NVIDIA Corporation (NASDAQ:NVDA) was a standout performer, hitting a record high in anticipation of an address by CEO Jensen Huang at the Consumer Electronics Show in Las Vegas.
U.S. stock index futures were mildly positive in Asian trade, with focus remaining on key nonfarm payrolls data due later in the week.
But despite Tuesday’s gains, most Asian markets were still nursing a weak start to 2025, amid persistent concerns over U.S. interest rates remaining high for longer.
Asia tech stocks track US gains; Nvidia in focus
Tech-heavy bourses were the best performers in Asia on Tuesday, with Japan’s Nikkei 225 index surging 2.4%, while South Korea’s KOSPI added 0.9%.
Japan’s TOPIX index rose 1%.
Tech stocks surged tracking their U.S. peers, which were buoyed by a mix of hype over artificial intelligence, as well as some bargain buying after clocking losses through December.
Nvidia’s Huang is widely expected to provide more details on the firm’s upcoming Blackwell AI chips, while any comments on AI demand will also be closely watched.
AI has been a key point of support for the tech sector over the past year, with chipmakers benefiting from increased capital expenditure on the sector, while software firms raced to provide their own AI offerings.
Chinese stocks lag after Tencent, CATL added to US blacklist
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved in a tight range, while Hong Kong’s Hang Sengg fell 0.5%.
The Hang Seng was weighed chiefly by losses in internet giant Tencent Holdings Ltd (HK:0700) and Tesla (NASDAQ:TSLA) battery supplier Contemporary Amperex Technology Co Ltd (SZ:300750), which both lost over 5%.
The two firms were added to a U.S. blacklist of companies with ties to the Chinese military. While inclusion in the blacklist does not entail any direct restrictions on the firms, it provides hurdles in doing business with U.S. companies- which represent a major market for both Tencent and CATL.
The new blacklist additions also raised concerns over souring trade ties between the world’s biggest economies, which are set to worsen amid increased trade tariffs under incoming U.S. President Donald Trump.
Trump on Monday denied reports that his administration will impose less strict trade tariffs than initially signaled.
A resurgent trade war bodes poorly for China and other Asian economies.
Broader Asian markets were mostly positive. Australia’s ASX 200 added 0.2%, while Singapore’s Straits Times index rose 0.1%.
Futures for India’s Nifty 50 index pointed to a mildly positive open, after the index plummeted 1.6% on Monday. Weak earnings from index heavyweights HDFC Bank Ltd (NS:HDBK) and Dabur India Ltd. (NS:DABU) eroded sentiment, especially ahead of more earnings from major Indian firms, which are due in the coming days.