The key Asian markets rebounded in Tuesday's trade, led by a recovery in technology stocks, while easing pressure from global bond yields also supported the broader rally in equities.
During Asian trading, Tokyo's Nikkei 225 gained 0.5% to 65,856.43, with shares of technology investor SoftBank Group climbing 2.3%. South Korea's Kospi also reversed its early losses to gain 0.7% to 6,742.74, as traders returned to technology stocks and snapped up beaten-down shares.
Elsewhere, Hong Kong's Hang Seng was nearly unchanged at 25,511.10, while the Shanghai Composite Index added 0.2% to 3,889.44. In Australia, the S&P/ASX 200 gained 0.7% to 9,164.60, while Taiwan's Taiex jumped 0.9%.
The positive sentiment also extended to the Indian stock market, where both the Nifty 50 and Sensex edged higher, supported by sharp late-hour buying.
Technology stocks are finding their footing ahead of Nvidia's latest earnings report, due on Wednesday. The chipmaker has for years been a bellwether for the artificial intelligence trade and, more recently, has also become increasingly involved in orchestrating funding for projects across the technology ecosystem.
Meanwhile, markets are also closely watching the US Treasury's next moves, with long-dated bond yields still trading near multi-decade highs. A slate of economic data and a key speech by Federal Reserve Chair Kevin Warsh later this week could further shape the direction of bond markets and expectations for interest rates.
With Treasury yields still elevated amid sticky inflation and concerns over widening fiscal deficits, traders will be watching for any clear guidance from Warsh on how the Fed might respond over the remainder of the year.
In the pre-market trade, US markets are traded with mild gains, with the future for the S&P 500 up 0.3% while that for the Dow Jones Industrial Average rose 0.2%. Earlier, a selloff in semiconductor giants dragged the Nasdaq 100 Index down nearly 1%. Nvidia Corp. fell for a seventh straight session—the longest losing streak since 2022.
In pre-market trade, US stock futures were trading with mild gains, with futures tied to the S&P 500 up 0.3%, while those linked to the Dow Jones Industrial Average rose 0.2%. Earlier, a sell-off in semiconductor giants dragged the Nasdaq 100 Index down nearly 1%. Nvidia Corp. fell for a seventh straight session, marking its longest losing streak since 2022.
According to Mahesh M. Ojha, VP — Research and Business Development at KC Securities, the Nasdaq faces immediate resistance at 26,050, followed by 26,250 and 26,390, while support levels are placed at 25,870, 25,560, and 25,090. The overall trend for the index remains bullish.
The Nikkei 225 index faces resistance at 66,000, followed by 66,590 and 66,820, while support levels are placed at 64,950, 64,460 and 64,150. The overall trend remains neutral.
Meanwhile, the KOSPI Index has resistance levels at 6,680, 6,800 and 6,950, while support is seen at 6,470, 6,300 and 6,180. The overall trend for the index remains bearish.
Similarly, the Hang Seng faces resistance at 25,720, 25,940 and 26,050, while support levels are placed at 25,370, 25,220 and 25,020. The overall trend remains bearish.
Domestic brokerage firm Bajaj Broking Research said that the Nifty formed a bearish candle with shadows in either direction, signalling consolidation amid stock-specific action, as the index failed to move above last week's high of 24,360 and gave up Friday’s gains to close around the 50-day EMA.
Bajaj Broking Research said volatility is likely to remain high in Wednesday's session on account of the monthly F&O expiry. According to the brokerage, the index holding above 24,130 could lead to a pullback towards the 24,280 and 24,360 levels. In the coming sessions, Bajaj Broking Research said a follow-through move above last week's high of 24,360 would signal an extension of the pullback towards 24,600 in the coming weeks. However, failure to move above last week's high could signal consolidation in the 24,000–24,350 range.
