Asian markets climbed on Tuesday, buoyed by another strong session on Wall Street, as US economic data eased recession fears and Chinese tech firms led a rally in Hong Kong.
Investors entered the week on a positive note after Beijing introduced new measures over the weekend to stimulate consumer spending. This was followed by US retail sales data, which showed slower-than-expected growth in February. However, a separate economic indicator—used to gauge overall growth—exceeded forecasts, tempering concerns of a downturn.
Hong Kong’s Hang Seng Index surged 2.2%, leading regional gains as investors snapped up shares of major Chinese tech giants. Alibaba, Tencent, and JD.com were among the top performers, while electric vehicle maker BYD soared over 6% to a record high after unveiling a new battery technology capable of charging in five minutes.
Shanghai, Tokyo, Sydney, Seoul, Singapore, Taipei, Mumbai, and Bangkok all ended higher. However, Jakarta’s market suffered a sharp decline, tumbling over 7%—its worst intraday drop since 2011—on concerns about Indonesia’s slowing economy and weakening consumer spending ahead of Eid celebrations.
The Asian rally mirrored Wall Street’s second consecutive day of gains, as investors grew optimistic despite ongoing concerns over Donald Trump’s trade war and its impact on global markets. Stephen Innes of SPI Asset Management cautioned against excessive optimism, warning that new US tariffs on trading partners could take effect as early as April 1.
“The storm is far from over. With the next escalation looming, markets remain on edge, balancing optimism with the risk of another sharp reality check,” Innes wrote.
The week ahead is critical for global monetary policy, with the Federal Reserve, Bank of Japan, and Bank of England all set to announce interest rate decisions. While no rate changes are expected, the Fed’s statement will provide insights into its outlook on inflation, the economy, and the potential impact of Trump’s fiscal policies.
Meanwhile, safe-haven demand pushed gold to a record high of $3,017.66, as investors weighed the uncertainty surrounding US tariffs and renewed geopolitical tensions in the Middle East following Israel’s airstrikes in Gaza.
