Asian stock markets moved higher on Tuesday, building on modest advances on U.S. exchanges overnight as investors positioned ahead of a busy week for corporate results and a pivotal U.S. central bank meeting.
U.S. stock indexes closed slightly up in the latest session, and futures tied to the tech-heavy Nasdaq strengthened during Asian trading hours, helping underpin regional sentiment.
Market attention centered on an upcoming cadence of earnings from major U.S. technology companies and the Federal Reserve's two-day policy meeting, which began later on Tuesday. Optimism among investors stems from hopes that reports from the so-called "Magnificent Seven" will bolster a global equity rally attributed to AI-related spending and resilient corporate profitability.
Corporate announcements investors are watching this week include results from Microsoft, Meta Platforms, Tesla and Apple. In Asia, Samsung Electronics and SK Hynix are slated to publish finalized fourth-quarter financial results during the same period.
At the same time, the Federal Reserve's gathering of policymakers drew focus. The central bank is widely expected to hold interest rates steady in its Wednesday decision as officials weigh persistent inflation pressures against signs of cooling economic momentum. Recent data pointing to a resilient labour market and slower but still elevated price growth have strengthened the market view that the Fed will maintain its current stance before contemplating further moves later in the year.
A notable development in regional markets occurred in South Korea, where the KOSPI surged by more than 2% after wiping out earlier modest declines. Semiconductor stocks led the advance: SK Hynix climbed 6% and Samsung rose 3%.
The index had opened lower following comments from U.S. President Donald Trump indicating he would raise tariffs on South Korean imports to 25% from 15% amid delays in finalising a trade deal, which initially pressured shares of major automakers. Hyundai Motor (KS:005380) and Kia Corp (KS:000270) slid in early trade as markets reacted to the prospect of higher export costs.
Sentiment improved later in the session after South Korea's presidential office said it had not been informed in advance of any tariff hike plans, helping lift confidence across the market.
Elsewhere across the region, Japan's Nikkei 225 edged up 0.3%, with gains constrained by a firmer yen that typically weighs on exporter profits. Chinese blue chips and the Shanghai Composite both posted modest advances, while Hong Kong's Hang Seng index rose 1.5%, supported by strength in technology names.
Markets in Australia and Singapore also finished higher: the S&P/ASX 200 and the FTSE Straits Times Index each climbed nearly 1%. Futures tied to India's Nifty 50 moved up about 0.3%.
Market context
Investors entered the week balancing expectations for solid tech earnings and a likely Fed pause against lingering geopolitical and trade-related headline risk. The flow of corporate news and the Fed's policy communication are set to guide near-term market direction.