Investing.com - Asian Pacific (APAC) shares started Tuesday on a high note, reflecting the sustained tech rally that boosted US benchmarks overnight.
By 10:40 am AEST (12:40 am GMT) the S&P/ASX 200 increased by 0.6%, the KOSPI 200 added 1.2%, and the Nikkei 225 gained 1%.
In the US, technology shares drove major US stock indexes to new records. The S&P 500 grew by 0.8%, and the NASDAQ Composite rose by 1%, both reaching record highs. The Dow Jones Industrial Average also saw a 0.5% increase.
The information technology sector, particularly chip makers, had a stellar day, with Broadcom Inc (NASDAQ:AVGO)leading the pack with a 5.4% gain. Super Micro Computer Inc (NASDAQ:SMCI) and Micron Technology Inc (NASDAQ:MU) also performed well.
This upward trend extended the run for major stock indexes, which have been riding on growing confidence in the economy and prospects of Federal Reserve interest-rate cuts later this year.
Investors are now focusing on a flurry of central bank decisions, economic data, and speeches by Fed officials. Central bank officials are due to meet in the UK, Switzerland, Norway, and Australia, with Switzerland already taking the lead in cutting rates.
Despite 30 record highs for the S&P 500 this year, some investors express concerns about underlying issues. More stocks have been falling than rising in recent weeks, leading some investors to worry. However, substantial gains from index heavyweights like Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA) have more than compensated for this weakness.
In the commodities market, Brent crude oil rose 2.2% to US$84.41 a barrel, while gold fell 0.6% to US$2,319.14.
In the bond market, the yield on Australian 2 Year government bonds dropped to 3.88%, while the 10 Year yield also fell to 4.11%. US Treasury notes climbed, with the 2 Year yield at 4.77% and the 10 Year yield at 4.28%.
Chinese shares ended mixed as investors processed the latest batch of economic data. Hong Kong's Hang Seng Index closed flat, while Japanese stocks ended lower, mainly due to falls in real-estate stocks. Indian markets were closed for Eid al-Adha.
In the UK, stocks ended lower on Monday, while European shares closed higher, with Germany's DAX adding 0.4% and France's CAC 40 gaining 0.9%.