Asian stocks were mixed on Tuesday as technology shares tracked overnight losses on Wall Street, while investors assessed stronger-than-expected Japanese economic growth data and monitored developments in the Middle East conflict.
Wall Street’s technology-heavy Nasdaq ended lower overnight amid inflation concerns from elevated oil prices. U.S. stock index futures also edged lower in Asian trading on Tuesday.
AI-linked chip stocks faced profit-taking ahead of quarterly earnings from Nvidia (NASDAQ:NVDA) due on Wednesday, seen as a major test for the sustainability of the artificial intelligence-driven rally.
Japan’s economy expanded an annualised 2.1% in the first quarter, above forecasts for 1.7% growth, supported by firmer private consumption and external demand. Capital expenditure rose 0.3% quarter-on-quarter, while the GDP price index increased 3.4%, underscoring persistent inflation pressures. Still, analysts expect that GDP growth will grind to a halt this quarter and next.
Japan's Nikkei 225 fell 0.4%, while the broader TOPIX index gained 0.5%.
Oil prices eased slightly on Tuesday after U.S. President Donald Trump said he was pausing a planned military strike on Iran and that there was “a very good chance” of reaching a nuclear agreement with Tehran. Brent crude slipped from recent highs above $110 per barrel, although prices remained elevated amid continued supply disruptions in the Strait of Hormuz.
The move spurred gains in some markets, with Australia's S&P/ASX 200 jumping 1.1%, and Singapore's Straits Times Index rising 0.6%. However, most major stock markets were subdued, with tech shares leading losses.
China's blue-chip Shanghai Shenzhen CSI 300 fell 0.6%, while the Shanghai Composite index traded flat. Hong Kong's Hang Seng index also traded largely unchanged. Futures tied to India's Nifty 50 edged down 0.3%.
South Korea's KOSPI index traded 3% lower, after dropping as much as 5% earlier in the session. Samsung Electronics (KS:005930) shares retreated more than 5% as the company and its labour union resumed negotiations.
