Morning Momentum Across the Region

After a turbulent Friday that saw U.S. equities tumble more than 2 %, Asian markets opened on Tuesday with a clear upside bias. The rally on Wall Street, driven by fresh optimism around U.S. earnings and a softer commodities backdrop, spilled over into Tokyo, Hong Kong, Shanghai and Singapore, helping regional indices claw back the bulk of Friday’s wipe‑out.

By mid‑session, the Nikkei 225 was up 1.4 %, the Hang Seng 33 gained 1.2 %, while the Shanghai Composite and Singapore’s Straits Times Index rose 1.0 % and 0.9 % respectively. Collectively, these moves erased roughly 80 % of the losses recorded on the previous trading day.

Key Drivers Behind the Turnaround

The rally can be traced to three intertwined factors:

• U.S. earnings beat expectations. Heavy‑weight companies such as Apple, Microsoft and Nvidia reported stronger‑than‑projected revenues, prompting analysts to lift price targets and revive growth narratives.
• Commodities price moderation. Crude oil slipped below US $80 per barrel and copper fell back from its recent highs, easing inflation concerns that had been weighing on risk assets.
• Improved sentiment on monetary policy. Recent comments from Federal Reserve officials suggested a more dovish stance, hinting that interest‑rate hikes may be nearing an end.

These US‑centric catalysts resonated with Asian investors, many of whom had been on the defensive after Friday’s sell‑off.

Sectoral Highlights

Technology led the charge in most markets, echoing the performance of U.S. chip and software stocks

Financials also posted gains, buoyed by a softer yield curve that reduced funding costs for banks. Hong Kong’s banking index climbed 1.4 %, and the Shanghai Financials sector rose 1.1 %.

.3 % on the day.

Investor Outlook and Risks

While the rebound is encouraging, analysts caution that the recovery may be fragile. Potential headwinds include:

• Persistently high inflation in emerging markets, which could prompt local central volatility in UMarket participants are closely watching upcoming earnings releases from2>Conclusion

  The Asian market rally on Tuesday demonstrates the interconnected nature of global equities. A rejuvenated Wall Street, spurred by positive earnings and easing commodity pressures, helped the region recover most of the damage inflicted on Friday. However, investors remain vigilant, balancing the renewed optimism against lingering macroeconomic uncertainties that could reshape the trajectory of the rally in the days ahead.