On Tuesday, Asia-Pacific markets experienced a decline, lacking significant catalysts, following the overnight increase of two major indexes driven by optimism in the technology sector. Amazon’s stock experienced a 4% increase following a $38 billion agreement with OpenAI, a strategic decision that will leverage hundreds of thousands of Nvidia’s graphics processing units. Nvidia experienced an increase of approximately 2% following the acquisition of export licenses permitting the shipment of its chips to the United Arab Emirates. Australia’s S&P/ASX 200 declined by 0.91% to 8,813.7 following the Reserve Bank of Australia’s decision to maintain its cash rate at 3.6%, attributing this choice to apprehensions regarding elevated inflation levels.

Japan’s Nikkei 225 experienced a decline of 1.74%, closing at 51,497.2, while the Topix saw a decrease of 0.65%, finishing at 3,310.14. South Korea’s Kospi experienced a decline of 2.37%, settling at 4,121.74, whereas the small-cap Kosdaq saw an increase of 1.31%, reaching 926.57. The Kospi has experienced an increase in 12 of the last 15 sessions, reaching several new highs this month, propelled by global AI trends and local structural adjustments that are gradually diminishing the persistent “Korea discount.”

On Tuesday, South Korea announced plans to triple its AI spending by 2026, with President Lee Jae Myung reportedly stating that 10.1 trillion won was allocated for AI transformation, as reported by South Korean media outlet Yonhap. The budget, which is three times the 3.3 trillion won designated for AI this year, is expected to position South Korea among the top three global AI powers, according to Lee.

The Hang Seng index in Hong Kong experienced a decline of 0.79%, settling at 25,952.4, while the mainland’s CSI 300 saw a decrease of 0.75%, reaching 4,618.70. Overnight in the U.S., the tech-heavy Nasdaq experienced an increase of 0.46%, whereas the S&P 500 saw a rise of 0.17%. The Dow Jones Industrial Average experienced a decline, decreasing by 0.48%.