(Sharecast News) - Asia-Pacific markets advanced on Tuesday, following gains on Wall Street as US retail sales data helped ease concerns about a potential recession.
The rally was led by a surge in technology shares in Hong Kong, with Japan's bourse also putting in a good showing.
"Trading during the Asia session was buoyed by renewed optimism surrounding China, which has unexpectedly benefitted from disruptions in US markets and growth projections under Trump's administration," said TickMill market strategy partner Patrick Munnelly.
"This latest upswing was driven by the release of another unexpectedly weak US retail sales report, alongside confirmation from the White House that reciprocal tariffs will take effect on 2 April.
"These developments have put downward pressure on the dollar while boosting gold prices."
Munnelly noted that China's introduction of childcare subsidies and other consumer-friendly measures added to the positive sentiment, with Monday's data hinting at a modest rise in retail spending.
"The Hang Seng index climbed to a three-year high, marking a nearly 23% gain for the year - the largest among major markets.
"Gains were broad-based, with miners, automakers, technology, and retail stocks leading the charge.
"Notably, Shenzhen-listed shares of electric vehicle manufacturer BYD soared to an all-time high after the company unveiled a new platform capable of charging electric vehicles as quickly as refuelling a gas-powered car."
Most markets finish Tuesday trading in the green
Hong Kong's Hang Seng Index surged 2.46%, driven by a strong rebound in technology stocks.
Shares of Baidu soared 12.22%, while WuXi AppTec and Li Auto gained 10.54% and 6.76%, respectively.
In Japan, the Nikkei 225 climbed 1.2% to 37,845.42, with financial and technology stocks leading the advance.
Tokio Marine rose 5.5%, Mercari gained 5.34%, and Resona Holdings added 4.59%.
The broader Topix index increased 1.29% to 2,783.56.
Investors were closely watching the Bank of Japan's ongoing policy meeting, where the central bank was expected to keep interest rates steady at 0.5%.
Chinese markets saw modest gains, with the Shanghai Composite rising 0.11% to 3,429.76 and the Shenzhen Component up 0.52% to 11,014.75.
Zhejiang Chengbang, Liaoning Fu-An Heavy Industry, and Xuelong Group each gained around 10% in Shanghai.
In South Korea, the Kospi 100 dipped 0.11% to 2,616.50, weighed down by losses in key stocks.
Korea Aerospace plunged 10.53%, while HYBE and LIG Nex1 declined 4.19% and 3.76%, respectively.
The Australian market saw a slight gain, with the S&P/ASX 200 edging up 0.08% to 7,860.40, supported by a 7.57% jump in Austal and solid performances from Megaport and EML Payments.
New Zealand's S&P/NZX 50 was the weakest performer, falling 0.73% to 12,076.85.
Self-listed exchange operator NZX dropped 4.4%, while SkyCity Entertainment and KMD Brands declined more than 4%.
In currency markets, the dollar was last 0.34% stronger on the yen to trade at JPY 149.71, while it added 0.05% against the Aussie to AUD 1.5672, but weakened 0.1% on the Kiwi, changing hands at NZD 1.7165.
Meanwhile, oil prices climbed, with Brent crude futures last up 1.46% on ICE to $72.11 per barrel, and the NYMEX quote for West Texas Intermediate gaining 1.49% to $68.59.
RBA watching America ahead of interest rate decision
The Reserve Bank of Australia was closely monitoring economic instability in the United States, a key stakeholder said overnight, as it prepared for its next interest rate decision on 1 April.
The central bank's February rate cut to 4.1% was widely anticipated, but was a contentious decision within the board.
RBA chief economist Sarah Hunter provided insights into the bank's approach to setting monetary policy during a speech at the AFR Banking Summit.
Meanwhile, Macquarie Bank reportedly raised concerns about the potential for a sharp downturn in share markets, citing ongoing volatility and global financial risks.
Reporting by Josh White for Sharecast.com.
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