Asian shares have followed Wall Street's upward trend, with Tokyo's Nikkei 225 index leading the way with a 2.4% increase driven by strong performances from semiconductor manufacturers. The Nikkei 225 closed at 38,460.08, marking its highest level in a month, with Renesas Electronics Corp. and Tokyo Electronic seeing significant gains.
Investors are closely monitoring Japan's central bank and Finance Ministry's response to the yen's prolonged weakness, which is currently at a 34-year low. The market is awaiting updates from the Bank of Japan's policy meeting starting Thursday.
Shares in Greater China also saw gains, with the Hang Seng in Hong Kong rising by 2% and the Hang Seng Tech Index increasing by 3.1%. Chinese artificial intelligence company Sensetime Group experienced a surge of 31.2% following the release of its latest AI model.
Other Asian markets also saw positive movements, with Taiwan's Taiex gaining 2.7%, South Korea's Kospi rising by 1.9%, and Australia's S&P/ASX 200 index increasing by 0.1% despite decelerating inflation.
In the U.S., the S&P 500 climbed 1.2%, the Dow Jones Industrial Average rose 0.7%, and the Nasdaq composite jumped 1.6%. A weaker-than-expected U.S. business activity report supported the market, with hopes of avoiding a severe recession while managing inflation pressures.
Earnings reports played a significant role in trading, with companies like GE Aerospace, Kimberly-Clark, General Motors, and Danaher exceeding analysts' expectations. However, Nucor experienced an 8.9% drop after falling short of profit and revenue forecasts.
The Federal Reserve's indication of potentially maintaining high interest rates to manage inflation disappointed financial markets, leading to a decline in Treasury yields. Oil prices saw a slight increase, with U.S. benchmark crude at $83.63 per barrel and Brent crude at $87.50 per barrel.
The U.S. dollar strengthened against the Japanese yen and the euro, reflecting ongoing market dynamics and economic indicators.
