Most Asian markets rise after US rally ahead of inflation report

HONG KONG, China — Asian markets rose Tuesday, building on a tech-led surge in Wall Street equities as investors returned to the sector after last week's losses, while attention turned to the upcoming release of key US inflation data.

Joe Biden's decision to drop out of the presidential election race and endorse Vice President Kamala Harris had little major impact on sentiment, analysts said, though there is much debate about who she chooses as her running mate.

However, analysts warned the road will likely be bumpy over the next few months.

Saira Malik at Nuveen said Biden's decision to pull out of the presidential race "adds even more uncertainty around what has already been a tumultuous 2024 geopolitical landscape.

"Mr Biden announced he will endorse... Kamala Harris, but the exact path forward is uncertain.

"If this news gives former President Trump a bump in the polls, that could provide a further boost to areas of the market that have been pricing in increased prospects for a Republican sweep in November.

"One thing does seem certain: More twists and turns in the political roller coaster in the months ahead."

Traders are also hoping for more policy announcements to kickstart the stuttering Chinese economy after last week's closely watched Third Plenum of leaders unveiled few measures save a pledge to help local governments financially.

This week has seen a more upbeat start after a sell-off last week that came on the back of a tech retreat fuelled by profit-taking and reports the White House was planning a fresh crackdown on firms supplying chip tech to China.

But optimism for another healthy earnings season, particularly among semiconductor makers, saw a bounce on Monday, with market darling Nvidia among the big winners along with Broadcom and Texas Instruments.

This week sees releases by Google parent Alphabet, Tesla and Spotify.

Tech firms have led the rally in markets this year, helping push all three main indexes in New York to multiple record highs, thanks to expectations the Federal Reserve will cut borrowing costs.

After last week was devoted to the US election and assassination attempt on Trump, the central bank's monetary policy is back in focus