(Sharecast News) - Asia-Pacific markets advanced on Tuesday, tracking gains on Wall Street, with South Korea leading regional outperformance despite renewed trade tensions with the United States.
Patrick Munnelly, market strategy partner at TickMill, noted, "stocks extended their upward momentum for the fifth straight session ... as markets regained composure amidst whispers of potential Yen intervention," with global equities hovering close to record levels after a renewed bid for risk assets.
Markets rise across Asia
Japanese equities closed firmly in positive territory, with the Nikkei 225 rising 0.85% to 53,333.54, supported by gains in technology and industrial names.
Resonac Holdings jumped 6.95%, Advantest advanced 5.85% and Nissui Corporation added 4.45%.
The broader Topix index rose 0.31% to 3,563.59.
Munnelly said the rally came as "Asian shares ... reached an all-time high," even as "disruptions in Japan's bond market and speculation about currency moves have driven heightened volatility across asset classes."
Chinese markets posted modest gains, with the Shanghai Composite up 0.18% at 4,139.90 and the Shenzhen Component edging 0.09% higher to 14,329.91.
In Shanghai, Inesa Intelligent Tech surged 10.02%, while Cybrid Technologies and Shanghai Sinotec both climbed 10.01%.
Hong Kong stocks outperformed mainland peers, with the Hang Seng Index rising 1.35% to 27,126.95, led by China Life Insurance, which gained 5.97%, AIA Group up 4.09% and CSPC Pharmaceutical Group higher by 3.54%.
Broader sentiment remained resilient, with Munnelly observing that "stock traders seemed unfazed by the potential for further volatility," despite heightened noise across currencies, precious metals and geopolitics.
South Korean equities hit fresh record highs, even after US president Donald Trump threatened higher tariffs overnight, citing delays in legislative approval of Seoul's trade deal with Washington.
Trump said tariffs on South Korea would rise to 25% from 15%.
The Kospi 100 surged 3.63% to 5,717.04, with SK Telecom jumping 12.3%, SK Hynix up 8.7% and LG Uplus rising 7.44%, while auto shares pared early losses.
The strong advance echoed Munnelly's view that "Wall Street rebounded on Monday, recovering from its first two-week losing streak since June," helping to underpin global risk appetite despite escalating trade rhetoric.
Sydney and Wellington also in the green
Australian stocks also advanced, with the S&P/ASX 200 gaining 0.92% to 8,941.60.
Telix Pharmaceuticals rose 8.31%, Capstone Copper Corporation added 7.49% and Pro Medicus climbed 5.11%.
Sentiment was supported by improving business indicators, with Australia's NAB business confidence index edging up to 3 in December from a revised 2 previously, while business conditions strengthened to 9 from 7.
Sales and profits improved, employment held steady at 4, and capacity utilisation eased slightly to a still-elevated 83.2%.
NAB chief economist Sally Auld said the survey was consistent with improved economic momentum in the fourth quarter.
In New Zealand, the S&P/NZX 50 rose 0.37% to 13,510.88, led by Pacific Edge, which jumped 9.63%, alongside gains in Infratil, up 3.24%, and A2 Milk Company, which rose 2.41%.
Dollar weakens as oil prices rise
In currency markets, the dollar weakened modestly, last trading down 0.34% on the yen at JPY 153.66, as it lost 0.19% against the Aussie to AUD 1.4430 and slipped 0.06% on the Kiwi to change hands at NZD 1.6730.
Munnelly said "currencies found some footing after Monday's turbulence".
Oil prices edged higher, with Brent crude futures last up 0.21% on ICE at $65.73 per barrel and the NYMEX quote for West Texas Intermediate rising 0.31% to $60.82, as investors also looked ahead to upcoming Federal Reserve policy decisions and a heavy slate of US technology earnings, with Munnelly adding that "the spotlight now shifts to whether the AI-fuelled stock rally can sustain momentum."
Reporting by Josh White for Sharecast.com.
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