- Following a surge in big tech that sparked a recovery on Wall Street, Asian shares broadly rose on Tuesday, but a selloff in Treasuries overnight held risk sentiment in check.
- The greatest gainers were Japanese stocks, which were poised to end a seven-day losing streak for Hong Kong's Hang Seng Index. The government's request for additional credit support on specific products only provided a modest boost, causing shares on the Chinese mainland to wobble.
- After Tesla's stock rose the most on Monday since March, shares of Asian electric vehicle manufacturers increased. In anticipation of Nvidia's earnings anticipated on Wednesday, stocks tied to semiconductors increased. As a result of China's sluggish recovery stifling demand for commodities, the world's largest miner announced a 37% decrease in full-year profit, causing BHP to lose value in Australia.
- The yield on Japan's 10-year bonds increased to its highest level since 2014, fueling rumours that the Bank of Japan would enter the market with an impromptu bond-buying operation to restrain advances. Additionally, rates in Australia and New Zealand were higher.
- After the sell-off on Monday, Treasury yields remained stable. As indications of economic growth support wagers for higher rates, investors are anticipating Federal Reserve Chair Jerome Powell's important address later this week.
