Asian stock markets experienced a robust rebound on Tuesday, fueled by AI-related shares and positive news from India. South Korea and Japan saw the most significant gains. This follows a positive session on Wall Street, with tech and chip stocks leading the charge. Investors are now keenly awaiting earnings reports from Amazon and Alphabet this week.

Australia's central bank, the RBA, increased interest rates by 25 basis points to 3.85%, reversing last year's easing cycle. The move was widely anticipated, and the Australian market remained positive. The RBA cited persistent inflation, driven by strong private demand. This decision reflects global efforts to curb inflation amid economic resilience.

Indian stocks surged following a U.S. trade deal announcement. President Trump revealed a deal reducing tariffs on Indian goods. The agreement, expected to normalize trade ties, reportedly involves India phasing out Russian oil purchases. The Nikkei also climbed, buoyed by a tech rally. Investors are betting on continued demand for AI infrastructure.

Sentiment towards AI-linked stocks has been volatile, but Tuesday's rally suggests investors are confident in their long-term prospects. With key players like Microsoft making heavy investments, the demand for AI infrastructure is expected to support chipmakers and tech suppliers, driving market gains and investor interest.