Tech Rally Lifts Asian Stocks as Dollar Firms on Rate-Hike Bets

Technology stocks powered Asian markets higher on Tuesday as lower oil prices lifted sentiment and investors pinned their hopes on developments in U.S.-Iran talks, while the dollar strengthened on expectations that further interest-rate increases may be needed to contain inflation, Ankur Banerjee reported for Reuters.

Asian technology stocks rise as investors track lower oil prices, U.S.-Iran developments and the upcoming Trump-Xi summit.

Attention also turned to a high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week, with investors watching for signs that the leaders of the world's two largest economies can prevent a further deterioration in relations.

Xi is scheduled to visit the United States from Sept. 23 to 25 for talks with Trump.

The meeting is expected to cover trade, technology and artificial intelligence, among other issues.

Brent crude futures stood at about $100.22 a barrel after falling more than 3% in the previous session and briefly trading below the $100 level.

Nick Twidale, chief market strategist at ATFX Global, said the decline in oil prices was an important factor behind the market's rebound in technology shares.

MSCI's broadest index of Asia-Pacific shares outside Japan rose more than 1% in early trading. South Korea's technology-heavy market gained nearly 2%, while Taiwan shares rose about 1.3%. Japan's markets were closed for a holiday.

The moves followed a strong Wall Street session in which the Nasdaq Composite rose 2.3% to a record close and the S&P 500 gained 1.5%, helping revive investor interest in artificial-intelligence-related stocks.