Asian Shares Mixed As Tokyo Rebounds From Last Week's Plunge

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign

Asian shares showed a mixed performance on Tuesday, with the Tokyo benchmark rebounding from last week's decline. Japan's Nikkei 225 surged by 2.2% to 35,782.68, while Australia's S&P/ASX 200 rose by 0.1% to 7,821.60. South Korea's Kospi experienced a slight dip of 0.3% to 2,610.17. Hong Kong's Hang Seng remained relatively unchanged, edging down by less than 0.1% to 17,107.52, and the Shanghai Composite inched up by less than 0.1% to 2,859.62.

In Tokyo, there was a notable demand for computer chip stocks, with Tokyo Electron surging by 5.4%, mirroring the strong performance of technology-related stocks on Wall Street. Investors also found comfort in the stabilization of the yen value, which had been volatile recently. A weaker yen benefits Japan's major exporters like Toyota Motor Corp., but it can gradually erode a nation's purchasing power.

The U.S. dollar strengthened against the Japanese yen, rising to 147.30 from 147.17 yen. The euro remained relatively stable at $1.0936. Global geopolitical tensions and trade disruptions could impact the dollar's performance, according to currency analysts.

Last week, Japanese stocks experienced their sharpest decline since the Black Monday crash of 1987. Comments from a senior Bank of Japan official emphasizing stability helped soothe market concerns. Ongoing global uncertainties, including conflicts in Ukraine and the Middle East, are contributing to market volatility.

South Korea's Kospi dipped slightly, while Hong Kong's Hang Seng remained stable.

Tokyo's Nikkei surged by 2.2% on strong demand for computer chip stocks.

Global geopolitical tensions and trade disruptions could impact currency performance.

Wall Street had a subdued trading day on Monday, with the S&P 500 closing nearly unchanged. The Dow Jones Industrial Average slipped by 0.4%, while the Nasdaq composite rose by 0.2%. Investors are awaiting key data releases later in the week, such as U.S. inflation and retail sales reports.

The Federal Reserve is maintaining its interest rates at a two-decade high to address 'stagflation,' while Japan's central bank is gradually raising rates to combat long-standing deflation. Japan's GDP data for April-June will be released on Wednesday.

In energy markets, benchmark U.S. crude fell to $79.52 a barrel, while Brent crude declined to $81.77 a barrel. Major U.S. companies, including Walmart and Home Depot, are set to report their latest earnings results this week, with many surpassing analyst expectations.