Asian stock markets follow the rise of US tech stocks; Iran conflict and RBA decision attract attention

Investing.com - Most Asian stock markets rose on Tuesday, led by technology stocks, as investors followed the overnight rebound on Wall Street, while closely monitoring tensions in the Middle East and this week’s busy central bank decisions.

Regional markets were boosted by Wall Street’s strong close, with optimism driven by Nvidia’s annual developer conference fueling tech stocks.

During Tuesday’s Asian trading session, U.S. stock index futures edged lower.

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KOSPI leads gains on Wall Street tech rebound

Nvidia (NASDAQ: NVDA) CEO Jensen Huang announced new AI systems and components at the company’s GTC conference, boosting market sentiment toward chipmakers and the broader tech sector.

Asian tech and semiconductor stocks followed this positive momentum, pushing major regional benchmarks higher.

Korea’s KOSPI performed the best, soaring nearly 3%, with Samsung Electronics (KS: 005930) stock rising nearly 5%.

Japan’s Nikkei 225 increased by 0.5%, while the broader Topix index gained 1.1%.

China’s Shanghai Composite edged up 0.4%, and the blue-chip CSI 300 index rose 0.7%.

Hong Kong’s Hang Seng Index increased by 1.1%.

Singapore’s Straits Times Index rose 1.2%, while futures linked to India’s Nifty 50 declined slightly.

Tensions in the Middle East persist; oil prices stay above $100 per barrel

However, gains were limited as investors continued to focus on escalating tensions in the Middle East. Conflicts involving the U.S., Israel, and Iran have entered their third week, raising concerns over disruptions to global energy supplies.

Oil prices remained high, with Brent crude holding above $100 per barrel after a slight dip on Monday.

Prices have surged in recent weeks due to threats to shipping through the Strait of Hormuz, a critical route for global oil trade.

Persistent high oil prices also heighten concerns about sustained inflation pressures, complicating global monetary policy outlooks.

RBA decision pending; Fed and Bank of Japan to announce decisions this week

Investors are awaiting the Reserve Bank of Australia’s interest rate decision later Tuesday.

Economists widely expect the central bank to raise the cash rate by 25 basis points as policymakers try to curb inflation and address rising energy costs.

The S&P/ASX 200 index in Australia was mostly flat ahead of the decision.

The decision will come before several major central bank meetings this week. The Federal Reserve will announce its policy decision on Wednesday, and the Bank of Japan will conclude its meeting on March 19.

Market participants are closely watching these meetings for signals on the direction of interest rates, as policymakers balance ongoing inflation risks from soaring oil prices.

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