Markets across Asia were a divided picture on Tuesday, with some exchanges posting losses while others posted small gains following strong trading on Wall Street, led by strong results from technology companies focused on artificial intelligence.
Japan’s main stock index fell 0.5% to close at 52,163.84 after the country returned from Monday’s holiday. The decline was steeper in Australia, where the main market fell nearly 1% to end at 8,818.00. South Korea experienced the steepest decline in the region, dropping 2% to settle at 4,138.88.
Meanwhile, Hong Kong bucked the downward trend and rose slightly by 0.2% to 26,209.39. The Shanghai market fell slightly by 0.2% to close at 3,969.05.
Wall Street’s AI star leads the market
The mixed results in Asia come after continued growth in the American market, largely driven by companies working on AI technology. The main U.S. stock index rose 0.2%, nearing its all-time high hit last week. However, this overall rally masked weakness in most individual stocks in the index.
US industry average fell The Associated Press reported 226 points, representing a drop of 0.5 percent. An index focused on tech stocks rose 0.5%.
Semiconductor companies that make processors for AI systems were the biggest boost to major U.S. stock indexes, continuing a pattern from earlier this year. Nvidia stock It rose 2.2%, bringing the total increase so far this year to 54.1%.
The online retail and cloud computing giant ranks as the second-largest contributor to market profits. The company’s stock rose 4% after the $38 billion partnership with the company behind ChatGPT was revealed. ChatGPT will rely on retailers’ cloud infrastructure for AI operations.
An AI cloud services company called IREN saw its stock price rise 11.5% on news of a $9.7 billion deal with a major technology company to provide access to specialized chips.
The data analytics company, already up 165% this year, rose another 3.3% as traders bought shares ahead of its quarterly financial report, which will be released after the market closes.
Profit growth is important as bubble concerns rise
Companies across the U.S. stock market are facing pressure to show solid profit growth to support the strong rise in stock prices since April. as Cryptopolitan Note that the number of market watchers is increasing concerns Stock prices in general, especially those of AI-related companies, have become too expensive, potentially creating a dangerous bubble similar to the one that caused the Internet stock market crash in 2000.
So far, most companies have met the high expectations set by investors. According to FactSet data, four out of five companies included in major indexes beat analyst expectations for the reporting period. With around two-thirds of companies reporting, the group is on pace to show a healthy profit increase of nearly 11% compared to the same period last year.
Not all companies have had good results. Shares fell 14.6% after a consumer goods company announced it would acquire another consumer goods company in a deal valued at $48.7 billion. The acquisition target, which sells painkillers, bandages and mouthwash, soared 12.3%.
Once the final numbers were released, the main US index rose 11.77 points to end at 6,851.97. The industrial index fell by 226.19 points to end at 47,336.68, while the technology index rose by 109.77 points to end at 23,834.72.
Bond market strong after manufacturing disappointment
Government bond yields showed little change, and the benchmark 10-year interest rate fell slightly from 4.11% to 4.10%.
A disappointing report on US factory activity showed the sector contracted more than expected last month. Multiple manufacturers told researchers that tariffs imposed by President Donald Trump are causing financial strain.
In commodity markets, U.S. crude oil prices fell 13 cents to $60.92 per barrel. The international benchmark fell 15 cents to $64.74 per barrel.
In the foreign exchange market, the dollar depreciated slightly from 154.19 yen to 153.95 yen. The euro fell from $1.1525 to trade at $1.1517.
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