Asian stock markets moved higher on Tuesday, following modest overnight gains on Wall Street, as investors prepared for a busy week of earnings from major U.S. technology companies. South Korean equities outperformed the region, rebounding strongly after early losses triggered by tariff-related concerns.
U.S. equity benchmarks closed slightly higher in the previous session, while futures linked to the tech-heavy Nasdaq also advanced during Asian trading hours.
Fed decision and major tech earnings in focus
Regional sentiment was lifted by expectations that earnings from the so-called “Magnificent Seven” U.S. technology giants will support the ongoing global equity rally, which has been fueled by strong AI-related investment and resilient corporate profits.
Investors are closely watching results due this week from companies such as Microsoft, Meta Platforms, Tesla, and Apple. In Asia, Samsung Electronics and SK Hynix are also set to release their finalized fourth-quarter results.
Attention is also firmly on the Federal Reserve, which begins a two-day policy meeting later on Tuesday. The central bank is widely expected to leave interest rates unchanged when it announces its decision on Wednesday.
Recent economic data showing a still-strong U.S. labor market and easing — but elevated — inflation has reinforced expectations that the Fed will remain on hold before considering any policy shifts later in the year.
South Korean stocks rebound after tariff jitters
South Korea’s benchmark KOSPI jumped more than 2%, reversing early declines. Shares of SK Hynix surged 6%, while Samsung Electronics climbed around 3%.
The index initially opened lower after Donald Trump said he could raise tariffs on South Korean imports to 25%, up from 15%, citing delays in finalizing a trade agreement.
The remarks briefly pressured shares of major automakers, with Hyundai Motor and Kia sliding in early trade on fears of higher export costs.
Market sentiment later improved after South Korea’s presidential office stated that it had not received prior notice of any planned tariff increases.
Asia markets mostly higher
Elsewhere, Japan’s Nikkei 225 rose 0.3%, although gains were limited by a firmer yen, which tends to weigh on exporter stocks.
Chinese blue-chip shares and the Shanghai Composite posted modest gains, while Hong Kong’s Hang Seng Index advanced 1.5%, led by strength in technology stocks.
Australia’s S&P/ASX 200 and Singapore’s FTSE Straits Times Index each climbed nearly 1%. Futures linked to India’s Nifty 50 also edged about 0.3% higher.
