Asian markets surged on Tuesday following another positive day on Wall Street, driven by US economic data that eased recession fears, while Chinese tech stocks helped propel a strong rally in Hong Kong. Traders began the week on a positive note after Beijing announced a series of measures over the weekend aimed at boosting activity among China’s vast consumer base.
On Monday, US data showed retail sales grew less than expected last month, but a separate economic growth indicator exceeded forecasts, easing concerns about a potential downturn. However, investors continue to worry about the long-term impact of Donald Trump’s trade war on global growth.
Hong Kong, which has gained over 20% since the start of the year, led the gains on Tuesday, rising 2.2%. The rally was driven by continued buying of Chinese tech stocks, with Alibaba, Tencent, and JD.com leading the charge. Electric vehicle maker BYD also saw significant gains, jumping over six percent to reach a record high after unveiling new battery technology that it claims can charge in just five minutes.
Other Asian markets also saw gains, including Shanghai, Tokyo, Sydney, Seoul, Singapore, Taipei, Mumbai, and Bangkok. However, trading in Jakarta was suspended after the market plunged more than seven percent, marking its largest intraday drop since 2011. Concerns about Indonesia’s economy and weakening consumer spending ahead of the Eid holiday period contributed to the drop.
The Indonesian stock market has fallen over 10% this year as the country grapples with economic challenges, and all eyes are now on the central bank ahead of a policy decision expected Wednesday.
The rally in Asian markets followed two consecutive days of gains on Wall Street, which had been under pressure this month from a sell-off triggered by Trump’s tariffs campaign, which many fear could drive up US inflation and harm the broader economy.
