Investing.com — Most Asian stocks rose on Tuesday, with stocks in Japan and South Korea leading on the strength of big tech stocks, while Chinese shares fell on new US export restrictions.
Stock prices hit record highs on Monday after a rally in heavyweight technology stocks, as optimism about artificial intelligence continued to play a role.
U.S. stock index futures held steady in Asian trading as investors awaited a speech from Fed Chairman Jerome Powell and a set of economic data due later this week to further gauge the central bank’s outlook on interest rates.
The gains in the tech sector came as investors repositioned themselves after Washington’s latest export curbs on 140 Chinese companies, which aim to cut off China’s access to advanced chips and equipment critical to AI.
The restrictions are expected to benefit global semiconductor players outside China.
Japan and South Korea lead gains in technology
Japan’s rose 1.6% and rose 1.3%, with the technology and industrial sectors contributing significantly. Tech majors Tokyo Electron Ltd (TYO:) rose more than 4% Advantest Corp. (TYO:) and SoftBank Group Corp. (TYO:) each gained more than 3%.
Japanese chipmakers will see modest gains as the restrictions disrupt their Chinese competitors, Bernstein analysts said in a note.
South Korea also rose 1.6%, with heavyweights Samsung Electronics Co. Ltd (KS:) and SK Hynix Inc (KS:) gained 1% and 1.5% respectively.
Indonesia’s rose by 1.4%.
Elsewhere, Thailand’s was 0.8% higher and Australia’s 0.7%, while India’s opened moderately.
Chinese stocks weaken due to US export restrictions
Bucking the local trend, the index fell 0.3% and was slightly lower, while in Hong Kong the index fell 0.4%.
The latest US restrictions reportedly include export bans on Chinese chip equipment companies such as NAURA Technology Group Co Ltd (SZ:) and Piotech Inc. (SS:). Both stocks fell more than 4% each.
The US is also poised to impose additional restrictions on Semiconductor Manufacturing International Corp (SMIC) (HK:), which has already been added to the US Entity List. Hong Kong-listed SMIC shares fell 2.3%.
Markets are closely watching updates on US-China trade ties as incoming US President Donald Trump previously vowed to impose additional tariffs on Chinese goods. Trump had also threatened this weekend to impose sanctions on the BRICS group of countries.
