Asian stocks rise, dollar hangs back

Asian stocks rose on Tuesday, while US bond yields and the dollar remained steady, as traders awaited President-elect Donald Trump’s cabinet selection and Federal Reserve easing outlook.

Technology shares were the star performers, mirroring the recovery in the US tech sector last week. However, upcoming earnings reports from major players like Nvidia kept investors cautious about making significant moves.

Markets have reduced their expectations of the Federal Reserve’s quarter-point interest rate cut in December. According to CME FedWatch, the probability of a cut now stands at less than 59 per cent, down from nearly 62 per cent a day earlier.

Japan’s Nikkei rose 0.5 per cent, while Australia’s benchmark index reached a record high after jumping 0.8 per cent. Taiwanese shares also advanced by 1.3 per cent.

On the other hand, Chinese markets were subdued. Investors remained concerned about potential trade tariffs under the new administration and awaited further details on stimulus measures from Beijing.

Hong Kong’s Hang Seng slipped 0.1 per cent, and mainland China’s blue-chip CSI 300 dropped 1.2 per cent.

Attribution: Reuters

Subediting: M. S. Salama