Asian Markets Rise as Hong Kong Stocks Lead the Way, Gold Prices Decline

Asian equities rose on Tuesday, with Hong Kong shares leading the gains, following a rebound in US stocks after a $2 trillion selloff. The optimism in the market was fueled by expectations of hefty profits from big tech leaders this week.

Technology firms in Hong Kong saw a surge in their shares after UBS Group AG upgraded shares in China and the city-state to overweight, citing resilient earnings despite concerns about the nation’s property and macroeconomic issues. Meanwhile, Japanese shares saw a slight pullback as the yen briefly strengthened against the dollar following comments from Finance Minister Shunichi Suzuki.

In the US, futures were relatively stable after the S&P 500 crossed the 5,000 mark, ending a six-day losing streak. The Nasdaq 100 also saw gains, with Nvidia Corp. leading the way in the big tech sector. Apple Inc. was highlighted as a top pick for 2024 by Bank of America Corp. on the back of optimism surrounding its upcoming results.

Investors are eagerly awaiting earnings reports from about 180 companies, representing over 40% of the S&P 500 market value, to see if they meet the high expectations for artificial intelligence. The focus on earnings comes after a period of market volatility driven by geopolitical concerns and signals from the Federal Reserve.

Overall, the market sentiment remains positive, with analysts expecting the relief rally in Asia to continue. However, there are concerns about the pace of gains and the potential for further pullbacks in US equities. The focus now shifts to upcoming earnings reports and key economic events scheduled for the week.