Asian Stock Markets Rally as Wall Street Rebounds and Oil Prices Drop

Asian equity markets traded sharply higher, following a strong overnight rally on Wall Street where technology shares recovered and falling crude oil prices helped benchmarks record their best session in seven months.

Market Movements

South Korea's Kospi Index jumped more than five percent in early trading, while Japan's Nikkei 225 advanced nearly three percent following a heavy decline on Friday. Hong Kong's Hang Seng Index gained 0.31 percent to reach 24,517, and Singapore's Straits Times Index slipped 0.04 percent to 5,257. Technology investor SoftBank Group surged, while semiconductor equipment makers Advantest and Tokyo Electron also posted gains alongside memory-chip maker Kioxia.

Factors and US Markets

The recovery followed a strong session on Wall Street where the S&P 500 recorded its biggest single-day rally since April 8 and the Nasdaq 100 ended 3.4 percent higher. A gauge of semiconductor stocks surged nearly seven percent. Meanwhile, Brent crude slumped almost six percent in the previous session to settle below $93 a barrel following comments from US President Donald Trump about the situation with Iran. Investors are also watching for the release of October US consumer price index data to gauge inflation trends and the Federal Reserve's monetary policy.

Domestic Markets

Indian equity markets remained closed for Diwali-Balipratipada. In the previous trading session on Monday, the BSE Sensex closed at 81,106.65, gaining 107.25 points or 0.13 percent, while the NSE Nifty 50 settled at 25,044.65, rising 58.25 points or 0.23 percent.

Context

Global financial markets often move in tandem as international investors react to major macroeconomic indicators like crude oil prices and US inflation data. Asian exchanges frequently take trading cues from overnight performances on major US indices like the S&P 500 and Nasdaq. Domestic closures in India mean local traders await global updates before the reopening of domestic stock exchanges.