Seoul Gazette - Stocks rise despite climbing oil prices

Tech stocks have in recent months been periodically hit by sharp drops as investors take fright at excessive valuations in the artificial intelligence (AI) sector, with chipmakers leading the rout.

But on Monday Wall Street's tech-heavy Nasdaq index advanced, aiding a recovery across Asia on Tuesday.

The Nasdaq continued to push higher at the open of trading on Tuesday, climbing 1.0 percent.

The VanEck Semiconductor exchange traded fund, which is composed of shares of the major firms in the sector, jumped 3.5 percent as New York opened for trade.

"The stock market is primed to give a semiconductor stock-led rebound effort another try," said Briefing.com analyst Patrick O'Hare.

But he noted that the semiconductor-led rally Monday gave up much of its early gains and that without a specific news catalyst the rally could fizzle out again.

"That will likely prove to be the case if Treasury yields and oil prices keep trending higher like they did yesterday," he added.

A recovery in tech shares will face a test with the release of earnings from Tesla and Alphabet in the coming days, followed by Microsoft, Meta, Apple and Amazon next week.

"Big Tech earnings now need to prove that AI revenues, margins and cash flow can justify the scale" of the huge investments in AI infrastructure, noted Stephen Innes of SPI Asset Management.

Bret Kenwell at eToro said investors now have higher expectations.

"They want growth and guidance strong enough to justify elevated valuations," he said.

Europe's main stock markets were mostly higher in mid-afternoon trading, with London's benchmark FTSE 100 index reacting positively to the appointment of John Healey as finance minister.

"John Healey's surprise appointment... hasn't troubled the markets as he is seen as a safe pair of hands," said Dan Coatsworth, head of markets at AJ Bell.

Investors were watching British bond yields after new Prime Minister Andy Burnham -- taking on stretched public finances -- said he would cut taxes on household electricity bills.

Elsewhere, oil prices climbed as Iran stepped up its attacks in the Middle East, two weeks after its war with the United States resumed.

Iran's Revolutionary Guards meanwhile said they had attacked and stopped two "non-compliant oil tankers" attempting to transit Hormuz, which Tehran has blockaded to avenge the US-Israeli attack that kickstarted the war on February 28.

"Oil remains the key macro anchor," Sucden brokers wrote in a research note to clients.

"We expect markets to remain headline-driven in the near term."

If Iran's Yemeni allies, the Houthis, which declared they would blockade Saudi Arabia's ports, follow through on that threat it could throw the world's energy markets into further chaos as Riyadh had been using a Red Sea port to export part of the supplies that normally transited the Strait of Hormuz.

On the corporate front Tuesday, General Motors raised its full-year profit forecast after reporting solid quarterly results.

The big US automaker reported $1.3 billion in profits, down 31 percent from the year-ago period.

North American auto sales fell during the period, although GM's results topped analyst estimates on strong pricing, an earnings release showed ahead of Wall Street's reopening.

Its shares rose 1.9 percent.

- Key figures around 1330 GMT -

New York - Dow: UP 0.4 percent at 52,055.66 points

New York - S&P 500: UP 0.6 percent at 7,490.47

New York - Nasdaq Composite: UP 1.0 percent at 25,772.55

London - FTSE 100: UP 0.2 percent at 10,545.31

Paris - CAC 40: DOWN 0.2 percent at 8,327.89

Frankfurt - DAX: UP 0.1 percent at 24,870.82

Tokyo - Nikkei 225: UP 3.3 percent at 66,232.19 (close)

Hong Kong – Hang Seng Index: FLAT at 25,132.29 (close)

Shanghai – Composite: UP 1.8 percent at 3,864.37 (close)

Brent North Sea Crude: UP 1.8 percent at $90.79 per barrel

West Texas Intermediate: UP 2.1 percent at $84.22 per barrel

Pound/dollar: DOWN at $1.3379 from $1.3438 on Monday

Euro/pound: UP at 85.28 pence from 84.95 pence

Euro/dollar: DOWN at $1.1412 from $1.1416

Dollar/yen: UP at 162.80 yen from 162.48 yen

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D.Choi--SG