Asian stocks rise as tech strength helps offset U.S. rate fears

Investing.com– Most Asian stocks rose on Tuesday, buoyed by a recovery in technology stocks ahead of key earnings from NVIDIA Corp (NASDAQ:), although concerns over rising U.S. interest rates and slowing Chinese growth held back bigger gains. 

While , the technology sector saw strong gains ahead of closely-watched on Wednesday. Anticipation of the Nvidia results also spurred positioning in stocks exposed to the world’s most valuable chipmaker. 

Focus this week will largely be on whether the chipmaker benefited as forecast from an artificial intelligence boom- a trend that is likely to benefit Asian chip stocks that supply to the firm.

But concerns over slowing growth in China, especially after a disappointing interest rate cut by the People’s Bank on Monday, still weighed on sentiment.

An overnight spike in U.S. , ahead of the this week, also kept traders wary.

Tech stocks, chipmakers gain ahead of Nvidia results 

Japan’s index was the best performer in Asia for the day, rising 0.8%, while the broader added 0.6%.

Semiconductor testing equipment maker Advantest Corp. (TYO:), which is an Nvidia supplier, surged over 4% and was the best performer on the Nikkei. Tech conglomerate SoftBank Group Corp. (TYO:)- which also has chipmaking exposure through its Arm unit, jumped over 2%.

In addition to the tech gains, sentiment towards Japan was also buoyed by a strong earnings season. Analysis from Japanese news agency Nikkei showed that top listed companies in Japan were headed for a third straight year of record profits, thanks to higher prices and continued monetary stimulus from the Bank of Japan.

Among other major Asian tech firms, Taiwan Semiconductor Manufacturing (TW:) (NYSE:) added 0.6%, while South Korea’s rose 0.6% on gains in chipmakers Samsung Electronics (KS:) and SK Hynix Inc (KS:). 

Futures for India’s index were flat, although heavweight Indian tech stocks are expected to track gains in their U.S. peers. 

Chinese stocks recover, but outlook uncertain 

China’s and indexes added about 0.2% each, while Hong Kong’s rose 0.4% on strength in heavyweight technology stocks.

All three indexes were trading close to their weakest levels for the year, after doubts over a Chinese economic recovery were intensified by a disappointing interest rate cut from the People’s Bank on Monday.

The move pointed to limited monetary support for the Chinese economy, as it struggles with its worst growth rate in years.

Concerns over China weighed on Australia’s , with miner BHP Group Ltd (ASX:), the biggest stock on the index, down 1.3% after it on sluggish Chinese demand.