Asian markets climb after US rally ahead of key inflation report

Asian markets climbed on Tuesday, following a tech-driven surge in Wall Street equities as investors returned to the sector after last week's losses. The focus now shifts to the upcoming release of key US inflation data, News.Az reports citing AFP.

Joe Biden's decision to drop out of the presidential election race and endorse Vice President Kamala Harris had little major impact on sentiment, analysts said, though there is much debate about who she chooses as her running mate.

However, analysts warned the road will likely be bumpy over the next few months.

Traders are also hoping for more policy announcements to kickstart the stuttering Chinese economy after last week's closely watched Third Plenum of leaders unveiled few measures save a pledge to help local governments financially.

This week has seen a more upbeat start after a sell-off last week that came on the back of a tech retreat fuelled by profit-taking and reports the White House was planning a fresh crackdown on firms supplying chip tech to China.

But optimism for another healthy earnings season, particularly among semiconductor makers, saw a bounce on Monday, with market darling Nvidia among the big winners along with Broadcom and Texas Instruments.

This week sees releases by Google parent Alphabet, Tesla and Spotify.

Tech firms have led the rally in markets this year, helping push all three main indexes in New York to multiple record highs, thanks to expectations the Federal Reserve will cut borrowing costs.

After last week was devoted to the US election and assassination attempt on Trump, the central bank's monetary policy is back in focus ahead of Friday's report on personal consumption expenditure, the Fed's favoured gauge of inflation.

The figure has come down steadily in recent months, giving central bank officials room to begin cutting rates, with bets on a September move increasing.

In New York, all three main indexes rose, with the S&P 500 and Nasdaq up more than one percent each.

And most of Asia followed suit, with Tokyo, Sydney, Seoul, Singapore, Wellington, Jakarta and Taipei in positive territory.

However, Hong Kong and Shanghai edged down.

In currency markets, the dollar weakened against the yen ahead of a policy meeting at the Bank of Japan next week that some say could see it hike interest rates again.

News.Az