HONG KONG (AP) — Asian stocks climbed on Tuesday, buoyed by gains in regional markets despite a fresh decline in Nvidia shares that weighed on U.S. indexes. The mixed performance on Wall Street underscored lingering concerns about the sustainability of the artificial intelligence (AI) sector’s meteoric rise.
Japan’s benchmark Nikkei 225 surged 1% to 39,190.97 following the release of data showing a moderation in May’s services producer price index growth compared to April. The yen strengthened slightly against the dollar, trading at 159.41 on Tuesday, up from Monday’s close of 159.59.
In Hong Kong, the Hang Seng Index rose 0.5% to 18,109.80, while China’s Shanghai Composite dipped 0.3% to 2,953.95. Australia’s S&P/ASX 200 gained 1.2% to 7,829.70, and South Korea’s Kospi advanced 0.4% to 2,774.54. Taiwan’s Taiex edged up 0.3%, and Bangkok’s SET index added 0.4%.
On Wall Street, the S&P 500 slipped 0.3% to 5,447.87 as Nvidia’s 6.7% decline weighed heavily on the tech-heavy Nasdaq composite, which fell 1.1% to 17,496.82. In contrast, the Dow Jones Industrial Average rose 0.7% to 39,411.21, supported by gains in oil and financial stocks.
Nvidia, a leader in AI chips, has seen its stock slide for the third consecutive day, shedding nearly 13% amidst concerns about the sustainability of the AI-driven market rally. The company’s recent retreat follows a remarkable ascent that saw its shares surge by 1,000% since late 2022, briefly making it the most valuable company on Wall Street.
The broader market sentiment remained cautious despite strong performances from sectors such as oil and financials. Exxon Mobil rose 3% and oilfield services provider SLB gained 4%, buoyed by stable oil prices near recent highs. Financial stocks also showed strength, with JPMorgan Chase and Wells Fargo rising ahead of anticipated Federal Reserve stress test results.
Investors are closely watching developments in bond markets, where the yield on the 10-year Treasury eased slightly to 4.23%, reflecting ongoing concerns about inflation and the Federal Reserve’s monetary policy stance.
In commodities trading, U.S. benchmark crude oil edged up 6 cents to $81.69 per barrel, while Brent crude added 2 cents to $85.17 per barrel. The euro strengthened marginally against the dollar, trading at $1.0736.
Market analysts suggest that the recent volatility in Nvidia and other AI-related stocks could signal a healthy rotation within the market, potentially broadening the rally beyond a few high-profile technology firms.
