Asian stocks rally as U.S. markets recover ahead of inflation data
- Asian stocks rose on Tuesday, with the MSCI Asia Pacific index gaining 2%.
- U.S. markets saw a strong recovery, with the S&P 500 rising 2.35%.
- Oil prices fell after U.S. President Donald Trump signaled that new strikes on Iran were unlikely.
- Nvidia shares dropped 4.3% amid an investigation into CEO Jensen Huang.
- China's 2026 trade surplus surpassed $1 trillion, setting a new annual record.
Asian stock markets climbed on Tuesday, November 10, 2026, following a broad rally in U.S. equities that recovered most of the previous week's losses. Australia's S&P/ASX 200 index gained 1.1% to 9,129.00, while the South Korean Kospi index climbed 4.4% to 5,239.13.
Investors are currently monitoring the U.S. political environment after the Democratic party secured control of both chambers of Congress in the midterm elections. This shift has prompted market concerns that new regulations could potentially hinder data center growth and the AI buildout, leading investors to rotate out of growth and AI-focused stocks into value and core stocks.
Morningstar maintains a positive long-term investment thesis for companies leading in AI technology, though it views commodity-oriented tech hardware stocks as overvalued and susceptible to further declines. Consequently, Morningstar has increased its fair value estimate for Arista Networks and decreased its fair value estimate for Sandisk.
U.S. markets recover from previous losses
U.S. markets experienced a recovery during the recent trading session, with the S&P 500 rising 2.35% in its best daily performance since April 8. The Nasdaq Composite increased by 2.74%. The S&P 500 currently sits 3.4% below the all-time high it reached last month.
SoftBank Group shares surged 12%, SK Hynix shares increased 8.01%, and Samsung Electronics shares rose 5.32%. SoftBank Group shares rose 13.9% on Tuesday, following a drop to a one-year low on Monday. Tokyo Electron shares surged 6.1% and Advantest shares gained 4.6% during the session. The Hang Seng index in Hong Kong rose 0.6% to 24,584.81.
Oil prices retreat on Iran strike outlook
Brent crude oil fell 1.2% to $91.48 per barrel on Tuesday. U.S. benchmark crude dropped 1.3% to $85.72 per barrel during the same session. This retreat in oil prices helped lift market sentiment for investors.
This diplomatic development helped ease broader inflation concerns for global markets.
Secretary of State Marco Rubio said that Iranian demands had sometimes been "outrageous and ridiculous". The U.S. market experienced its worst single-day performance since April 2025 on November 9, 2026.
Nvidia shares decline amid executive investigation
Nvidia shares fell 4.3% on Tuesday as the company investigates CEO Jensen Huang. Reports state the FBI is investigating Huang regarding a scandal involving China.
Nvidia shares had previously dropped more than 5% on the morning of November 9, 2026. Nvidia's board stated it has "no reason to believe" that company secrets or national security were compromised. The board is conducting an inquiry into the matter.
Investors remain cautious regarding the durability of the market recovery due to uncertainty surrounding these reports and the upcoming U.S. inflation data. Strong profit reports from major U.S. companies contributed to the market rally.
China reports record trade surplus
China reported its trade surplus in customs data released on Tuesday. Exports grew 35.2 percent and imports grew 41.6 percent compared to the previous year.
The trade surplus for 2026 has surpassed $1 trillion, putting the country on track for a new annual record.
Investors await U.S. October inflation data
Market consensus for headline CPI is a 3.9 percent year-over-year increase, accelerating from the 3.7 percent reported in September.
Market consensus for core CPI is 2.8 percent year-over-year, which is flat compared to the 2.8 percent reported the previous month. Headline PPI is forecast at a 0.4 percent month-over-month increase, following a 1.3 percent increase in the previous month.
Market consensus for core PPI is a 0.3 percent month-over-month increase, compared to a 0.7 percent increase the previous month. Sekera predicts that both CPI and PPI figures will likely come in on the "hotter side" relative to market consensus.
TSMC reported that its October revenue was nearly six times higher than the same month in the previous year, citing robust global demand for AI chips. Upcoming earnings reports are expected from semiconductor equipment firm Applied Materials and neocloud firms CoreWeave and Nebius Group.
Additional inflation data, specifically PPI reports, is scheduled for release on Friday, November 13.
Federal Reserve interest rate hike probability increases
The probability of a Federal Reserve interest rate hike rose to 84 percent from 74 percent the previous week. This shift follows "pretty hot" jobs data released on Friday.
Kevin Warsh has served as Federal Reserve Chair since taking over the role earlier in the summer of 2026.
Indian financial markets closed for holiday
Financial markets in India were closed on Tuesday for a holiday.
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