Asian stocks mostly traded lower on Tuesday, despite a strong rally in U.S. markets, spurred by optimism surrounding President Donald Trump’s reelection and recent economic policies.
Japan’s Nikkei 225 was an exception, rising by 0.6% to 39,774.43 in early trading. However, other major Asian indices saw declines. Australia’s S&P/ASX 200 dropped 0.3%, settling at 8,238.00, while South Korea’s Kospi fell 0.5%, to 2,520.34.
Chinese tech stocks have continued to struggle, with investors closely monitoring upcoming earnings reports from China. In Hong Kong, the Hang Seng Index slipped 0.7%, to 20,280.34, while the Shanghai Composite index saw little movement, edging up by less than 0.1% to 3,470.83.
In the U.S., Wall Street experienced gains following President Trump’s victory and a recent Federal Reserve interest rate cut aimed at supporting the economy. The S&P 500 rose 0.1%, capping off its best week of the year. The Dow Jones Industrial Average added 304 points, or 0.7%, and the Nasdaq Composite advanced 0.1%.
Tesla led the charge on the S&P 500, jumping 9.1% as its stock continued to surge following the election. The electric vehicle maker, led by CEO Elon Musk, has benefited from a closer alignment with Trump’s administration. Tesla’s shares surged nearly 15% the day after the election and have continued their upward trajectory.
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