Global stocks advance following US tech rally ahead of inflation data

U.S. stock futures indicated further increases.

Oil prices, however, continued their downward trajectory. Brent crude dipped below $91 per barrel, marking a three-month low, following a statement from U.S. President Donald Trump on Monday suggesting the war in Iran is “militarily is effectively over,” which eased concerns about potential escalation.

European markets saw significant advances, with Germany’s DAX rising 1.3 per cent to 26,267.19 and the CAC 40 in Paris gaining 1.2 per cent to 8,233.30. The FTSE 100 in Britain increased by 0.4 per cent to 10,830.12. Futures for the S&P 500 and the Dow Jones Industrial Average also showed positive movement, rising 0.3 per cent and 0.7 per cent respectively.

Strong demand for AI chips fueled growth, as Taiwan Semiconductor Manufacturing Co. (TSMC) reported a nearly six-fold increase in October revenue compared to the previous year. Taiwan’s Taiex index jumped 2.5 per cent. Japan’s Nikkei 225 closed 2.9 per cent higher at 60,459.58. Shares of SoftBank Group, an investor in OpenAI, surged 13.9 per cent ahead of the company’s earnings release, recovering from a year-low on Monday after reporting a $7 billion loss for the three months ending September.

Several other technology-related companies also saw gains, including computer chip equipment maker Tokyo Electron (up 6.1 per cent) and testing equipment maker Advantest (up 4.6 per cent). South Korea’s Kospi climbed 4.4 per cent to 5,239.13, with Samsung Electronics rising 4.7 per cent and SK Hynix increasing 6.7 per cent.

In Hong Kong, the Hang Seng rose 0.6 per cent to 24,584.81, while the Shanghai Composite index edged 0.1 per cent higher to 3,663.72. China’s October exports increased by 35.2 per cent year-on-year, while imports grew by 41.6 per cent, according to customs data. This performance suggests the country is on track for another record year, with the trade surplus already exceeding $1 trillion.

Australia’s S&P/ASX 200 rose 1.1 per cent to 9,129.00. Markets in India were closed for a holiday.

Investors are closely monitoring the upcoming U.S. consumer price index report for October, which is projected to show inflation at 3.9 per cent, a slight increase from 3.7 per cent in September.

On Monday, the S&P 500 experienced a 2.3 per cent increase, marking a second consecutive gain, following concerns that Democratic victories in the U.S. midterm elections could hinder the construction of AI data centers. The Dow Jones Industrial Average gained 2.2 per cent, and the Nasdaq composite rose 2.7 per cent. The decline in Brent crude prices also contributed to the positive market sentiment.

Nvidia’s shares rose 1.8 per cent in premarket trading Tuesday, after falling 4.3 per cent on Monday due to an investigation into CEO Jensen Huang’s relationship with a business executive, who U.S. intelligence reportedly determined was gathering information for China. Nvidia’s board stated they have “no reason to believe” that national security or company secrets were compromised, but an inquiry is underway. China has denied the allegations.

Brent crude, the international benchmark, fell 2.2 per cent to $90.52 a barrel, while U.S. benchmark crude oil decreased 2.2 per cent to $84.94 a barrel. The U.S. dollar strengthened to 157.91 Japanese yen from 157.90 yen, while the euro weakened to $1.1249 from $1.1266.