Asian tech stocks looked set to rise after a revival in the artificial-intelligence trade lifted Wall Street, as investors awaited the results of the US midterm elections. Equity-index futures for South Korea and Taiwan pointed higher, while those for Australia fell. Contracts for Japanese stocks edged lower as traders returned from a holiday.
US chipmakers rallied, with the Philadelphia Semiconductor Index climbing 2.6% after a recent rout fueled by concerns over the scale of AI spending. The rebound lifted the Nasdaq 100 by 0.7%. Super Micro Computer Inc. and Advanced Micro Devices Inc. both gave stronger-than-expected revenue forecasts, while Meta Platforms Inc. drew solid demand for its first bond sale in six months. Elsewhere, Brent crude hovered near $104 a barrel on Tuesday as traders weighed conflicting signals on US-Iran peace talks.
Treasury yields rose after US job openings climbed to a four-month high, while the dollar strengthened. Angelo Kourkafas at Edward Jones said the results could act as a clearing event removing some uncertainty, though developments around the AI theme and geopolitics remain the primary forces driving markets into the final two months of the year.
Millions of Americans are casting ballots in races that will determine control of Congress. Polymarket is pricing roughly a 95% probability of Democrats taking the House of Representatives and about a 77% chance of winning the Senate. Ken Mahoney at Mahoney Asset Management said Tuesday's elections could reshape the balance of power in Washington.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing