Asian Stocks Advance on U.S. Tech Rally as Investors Await Trump-Xi Talks

Asian stocks gained broadly on Tuesday, with technology shares leading the advance, after a rally in U.S. artificial intelligence stocks boosted investor sentiment. Market participants are also closely watching for developments from a planned meeting between the leaders of the United States and China later this week.

Wall Street AI Rally Lifts Tech Shares

The positive momentum in Asia followed a strong session on Wall Street, where the tech-heavy Nasdaq Composite rose 2.3% to a record-high close and the S&P 500 gained 1.5%. The rally was driven by renewed enthusiasm for the AI sector, highlighted by an 11% jump in Meta Platforms and a nearly 10% gain for Advanced Micro Devices.

This sentiment carried over to Asian tech markets:

• South Korea’s KOSPI climbed 1.7%, with chipmakers Samsung Electronics and SK Hynix rising 2.1% and 2.6%, respectively.
• Taiwan’s Weighted Index advanced 1.5%, led by an over 8% surge in MediaTek.
• Hong Kong’s Hang Seng TECH index was up 1.4%.

Focus Shifts to U.S.-China Summit

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Investors are now turning their attention to a summit between U.S. President Donald Trump and Chinese President Xi Jinping scheduled for Thursday in Washington. Key topics expected on the agenda include trade, artificial intelligence, and supply chains. Recent positive descriptions of preparatory talks by officials from both nations have raised hopes for an extension of the current trade truce.

Chinese and Hong Kong markets extended recent gains ahead of the meeting. The blue-chip Shanghai Shenzhen CSI 300 index added 0.7%, while Hong Kong's Hang Seng index gained 0.6%. Major Chinese technology firms including Alibaba, Baidu, and Tencent all traded higher.

Broader Market Sentiment

Broader risk appetite was also supported by lower oil prices. Brent crude futures steadied around $100.22 a barrel after falling more than 3% on Monday, a move attributed to higher Saudi exports and hopes for U.S.-Iran diplomacy. In Australia, the S&P/ASX 200 edged up 0.2%, with gains capped by losses in energy stocks.

Elsewhere in the region, Singapore's Straits Times Index rose 0.4%. Japanese markets were closed for a public holiday, though Nikkei 225 Futures traded in positive territory.