HONG KONG, Feb 10, (V7N) – Asian equity markets advanced further on Tuesday, extending gains from Wall Street as improved global sentiment helped calm investors after last week’s sharp volatility.

Tokyo led the region, with the Nikkei 225 surging more than two percent to another record high, supported by optimism following Japanese Prime Minister Sanae Takaichi’s recent election victory. Market participants anticipate that the new administration may pursue supportive economic policies, including fiscal measures and tax initiatives, which has boosted investor confidence.

Technology stocks once again played a leading role in Japan’s rally. Shares of investment group SoftBank jumped more than 10 percent, while Tokyo Electron, Sony and Advantest also posted strong gains, reflecting renewed appetite for growth-oriented sectors.

Analysts, however, cautioned that expectations are already high. UBS Securities’ Nozomi Moriya noted that markets are pricing in policy optimism ahead of concrete measures, adding that investors will closely monitor how the new government balances economic priorities, growth strategies and broader policy goals.

Gains were also recorded across other regional markets, including Hong Kong, Sydney, Seoul, Shanghai, Taipei, Manila and Wellington.

Regional sentiment was underpinned by another positive session on Wall Street, where major technology firms such as Microsoft, Meta and Nvidia helped drive gains. Still, concerns persist over the scale of investment flowing into artificial intelligence, with investors questioning when substantial returns may emerge.

“Recent earnings have revived debate around the sheer size of spending plans,” said Fiona Cincotta, senior market analyst at City Index, noting that several major technology companies are collectively expected to invest hundreds of billions of dollars in AI development.

Attention is now shifting to key US economic data scheduled for release this week, including delayed non-farm payrolls figures, as well as inflation and retail sales data. The figures are expected to provide clearer signals on the health of the US economy and the future path of interest rates.

US officials have suggested that softer employment data should not necessarily be viewed as a cause for concern, pointing to structural factors such as slower population growth alongside strong productivity gains.

Market snapshot around 0230 GMT:

  • Tokyo Nikkei 225: up 2.8 percent at 57,926.07

  • Hong Kong Hang Seng: up 1.3 percent at 27,367.12

  • Shanghai Composite: up 0.2 percent at 4,131.80

In currency markets, the yen edged higher against the dollar, while the euro and pound eased slightly. Oil prices were marginally lower, with both Brent and US crude slipping in early Asian trade.

END/WD/RH/