Asia-Pacific markets exhibited a mixed performance on Tuesday, following a rebound in technology stocks driven by a rally in the parent company of Google and optimism surrounding a potential Federal Reserve rate cut. Optimism regarding Alphabet’s position in the AI competition emerged last week following the tech giant’s announcement of its enhanced AI model, Gemini 3. The stock experienced an increase of 6.31% on Monday, while other AI-related equities such as Broadcom and Micron Technology also experienced an uptick, continuing a broader recovery that commenced on Friday when the president of the New York Federal Reserve indicated the possibility of a December interest rate reduction. Japan’s benchmark index concluded the session unchanged at 48,659.52, while the Topix index declined 0.21% to finish at 3,290.89.

Stocks associated with AI experienced significant gains on the Nikkei 225, highlighted by the performance of semiconductor testing equipment supplier Advantest trading at a 4.18% increase, while Tokyo Electron, a key supplier of chipmaking equipment to foundries producing Nvidia’s chips, rose 3.05%. However, chip equipment manufacturer Lasertec relinquished earlier gains and ended the session unchanged. South Korea’s Kospi index increased 0.3%, closing at 3,857.78, while the small-cap Kosdaq, after initially rising, finished the day unchanged at 856.03. Major player SK Hynix declined by 0.19%, and Samsung Electronics increased by 2.69%. Australia’s ASX/S&P 200 concluded the trading session with a modest increase of 0.14%, settling at 8,537 amidst fluctuations in market activity.

Hong Kong’s Hang Seng Index and the Hang Seng Tech index reduced gains to 0.22% and 0.42%, respectively, while the mainland’s CSI 300 experienced an increase of 0.99%. India’s Nifty 50 exhibited little movement in early trading, while the BSE Sensex index reduced its gains to remain just above the flatline. U.S. equity futures exhibited minimal variation during the early hours of trading in Asia as global investors digested market’s strong gains and prepared for key economic data releases. Sentiment across Asian markets remained cautious yet supported by renewed optimism surrounding AI-driven stocks and potential monetary easing in the U.S., which continued to influence regional risk appetite.

Overnight, the S&P 500 experienced an increase of 1.55%, concluding at 6,705.12, whereas the Nasdaq Composite surged by 2.69%, finishing at 22,872.01. The tech-heavy index recorded its most significant increase since May 12, achieving a rise of 4.35%. The Dow Jones Industrial Average increased by 202.86 points, representing a rise of 0.44%, concluding at 46,448.27. With market’s strong performance setting the tone, Asia-Pacific traders continued monitoring developments in global tech, monetary policy expectations, and regional economic updates to navigate short-term market direction.