Asian equities advanced on Tuesday as oil prices fell, with the MSCI AC Asia Pacific index up about 1% and on track for a fourth gain in five sessions.
Brent crude dropped roughly 2.6% to around $86.25 per barrel, extending a weekly decline of about 8.5%. Regional benchmarks reflected the mixed sentiment: Japan’s Nikkei 225 gained 0.7%, while South Korea’s KOSPI rose 1.2%. Australia’s S&P/ASX 200 and India’s Nifty 50 slipped 0.3% and 0.2%, respectively, while Thailand’s SET Index advanced 0.8%.
Technology shares led gains in several markets. Samsung Electronics rose 2.3%, SK Hynix added 2.0%, and SMIC gained 4.1%. LARGAN Precision surged 10% in Japan, while Xiaomi climbed 3.2% and Tencent rose 1.1% in Hong Kong. Kioxia Holdings fell 2.2% and LG Innotek dropped 2.7%.
Attention remains on Nvidia’s upcoming earnings report, with analysts forecasting second-quarter revenue of approximately $92.2 billion, nearly double the year-earlier figure. Third-quarter revenue is projected at about $104.2 billion.
Macro data also influenced trading. Australia’s July consumer price index rose 3.5% year-on-year, while trimmed-mean inflation held at 3.6%. Markets increased the probability of a September rate hike by the Reserve Bank of Australia to around 36%, up from 17% prior to the release. The Bank of Thailand is expected to leave its benchmark rate unchanged at 1% at its policy meeting.
Geopolitical developments added context, as Iran and Oman resumed talks on managing Strait of Hormuz traffic, including a potential temporary shipping corridor. Shipping volumes through the waterway remain below typical levels.
U.S. personal consumption expenditures inflation data is due on Wednesday, followed by remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on Friday.
