Asian Stock Market: The Asian stock market experienced a rise on Tuesday, propelled by a resurgence in the technology sector’s performance, which counteracted concerns about escalating U.S. interest rates and decelerating Chinese economic growth, thereby tempering more substantial advances.

The technology segment exhibited notable upswings in anticipation of the imminent pivotal earnings release by Nvidia Corp (NASDAQ:), scheduled for Wednesday. This optimism over Nvidia’s outcomes also triggered positioning in equities linked to the world’s premier chip manufacturer.

This week’s spotlight will primarily be on evaluating whether the chip giant reaped projected gains from the artificial intelligence upsurge – a trend poised to favor Asian chip stocks that serve as suppliers to the company.

However, prevailing apprehensions regarding China’s economic slowdown, particularly following the underwhelming interest rate reduction by the People’s Bank on Monday, lingered and constrained market sentiment.

Furthermore, an overnight surge in U.S. bond yields, in advance of a major Federal Reserve event this week, retained a sense of caution among traders.

Tech Stocks and Chipmakers Rally in Anticipation of Nvidia’s Results

Japan’s market index emerged as the standout performer in the Asian realm, with an upward tick of 0.8%. Meanwhile, the broader regional index marked a 0.6% increase.

Advantest Corp (TYO:), a prominent manufacturer of semiconductor testing equipment and a supplier to Nvidia, enjoyed an impressive 4% surge, positioning it as the day’s best-performing constituent of the Nikkei. The tech conglomerate SoftBank Group Corp (TYO:), boasting chipmaking exposure through its Arm subsidiary, notched up a 2% jump.

Beyond the technology sector’s robust showing, Japan’s market sentiment was buoyed by a robust earnings season. Analysis conducted by the Japanese news agency Nikkei indicated that major publicly listed Japanese companies were poised to achieve their third consecutive year of record profits, thanks to elevated prices and the continuous monetary stimulus provided by the Bank of Japan.

Amid other significant Asian tech entities, Taiwan Semiconductor Manufacturing (TW:) (NYSE:) posted a 0.6% addition, while South Korea’s index advanced by 0.6% on the back of gains in the chip giants Samsung Electronics (KS:) and SK Hynix Inc (KS:).

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Indian Index Futures displayed stability, although influential Indian tech stocks are anticipated to replicate the gains witnessed by their U.S. counterparts.

Chinese Equities Rebound, Yet Outlook Remains Uncertain

China’s and indexes each recorded a 0.2% uptick, while Hong Kong’s index notched a 0.4% rise, propelled by the sturdy performance of heavyweight technology stocks.

All three indexes were found to be trading in proximity to their lowest points for the year, as uncertainties about China’s economic resurgence were exacerbated by the uninspiring interest rate cut from the People’s Bank on Monday.

This decision underscored the limited scope for monetary support to be extended to the Chinese economy, which grapples with one of its most sluggish growth rates in years.

Apprehensions about China’s economic trajectory cast a shadow over Australia’s, with the dominant constituent of the index, mining giant BHP Group Ltd (ASX:), suffering a 1.3% dip due to languid Chinese demand.