Asian Shares Advance On China Optimism

Asian stocks advanced on Tuesday after data showed U.S. retail sales rebounded marginally in February, helping ease recession concerns.

Regional gains were also driven by optimism over China’s economy, fueled by the latest economic stimulus initiatives.

The dollar steadied near a five-month low against major peers, while gold scaled a record peak above the key $3,000 mark ahead of the Federal Reserve’s policy meeting scheduled for March 18-19.

The Fed is expected to keep interest rates steady and maintain its hawkish outlook amid economic uncertainties.

Oil extended gains for a third straight session as escalating tensions in the Middle East overshadowed concerns about a potential global glut.

Chinese shares edged up slightly after recent announcements to boost consumer spending. The benchmark Shanghai Composite Index closed up 0.1 percent at 3,429.76.

Hong Kong’s Hang Seng Index surged 2.5 percent to 24,740.57, reaching a three-year peak as investors turned positive on the outlook for China. BYD shares surged 4.1 percent after the electric vehicle giant unveiled its new fast-charging technology.

Japanese markets rallied to end near a three-week high after Berkshire Hathaway Inc. increased its stake in five trading houses.

Investors also looked ahead to the Bank of Japan’s interest-rate decision on Wednesday, with the central bank expected to keep the policy rate at 0.5 percent amid concerns over global economic prospects due to escalating trade tensions.

The Nikkei 225 Index jumped 1.2 percent to 37,845.42, while the broader Topix Index settled 1.3 percent higher at 2,783.56. Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo surged 2-4 percent.

Seoul stocks gave up early gains to end on a flat note amid lingering tariff woes. Chip giant SK Hynix and leading chemical firm LG Chem both fell around 1.5 percent, while bio firm Samsung Biologics gained 1.4 percent.

Australian markets finished on a flat note after Reserve Bank of Australia Assistant Governor (Economic) Sarah Hunter said the monetary policy is always data dependent and the link between the central bank’s forecast and policy decision is not mechanical – dashing hopes for imminent rate cuts.

Both the S&P/ASX 200 and the All-Ordinaries Index finished marginally higher, giving up early gains as banks declined, offsetting strength in the real estate and mining sectors. Goodman Group rose 1.1 percent on hopes of decreased mortgage rates.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index dropped 0.7 percent to 12,076.85, continuing its downward trend to reach a fresh low since last July.

U.S. stocks rose for a second straight session on Monday after Treasury Secretary Scott Bessent said he is “not worried” about the recent market downturn.

Overall gains were limited due to weak economic data and trade uncertainties. Retail sales rose less than expected in February and saw downward revisions for January.

Factory activity in New York State plummeted the most in nearly two years in March and homebuilder sentiment dropped to a seven-month low in March, adding to concerns about the economic outlook.

A model utilized by the Federal Reserve Bank of Atlanta projected a -2.1 percent contraction in Q1 2025, down from the March 7 estimate of a 1.6 percent contraction.

The Dow gained 0.9 percent, the S&P 500 rose 0.6 percent and the tech-heavy Nasdaq Composite edged up by 0.3 percent.

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