Investing.com - Asian Pacific markets opened on a high note on Tuesday, following a mixed closure of US stocks overnight, with the S&P 500 and Nasdaq each hitting fresh record highs.
By 10:40 am AEST (12:40 am GMT), the S&P/ASX 200, KOSPI 200, and Nikkei 225 all experienced gains, rising 0.6%, 0.3% and 0.9%, respectively.
US stock indexes remained close to or at record levels as the summer slowdown continued. Despite this, the upcoming week promises some action with a busy calendar.
The S&P 500 and NASDAQ Composite both set new record closes, while the Dow Jones Industrial Average slipped marginally. Market sentiment is eagerly awaiting Federal Reserve Chair Jerome Powell's testimony before Congress, seeking hints of potential interest rate cuts.
Last week's jobs report, which revealed a slight increase in unemployment, added to the case for a September rate cut. If Thursday's consumer price index indicates that inflation continued to moderate in June, the Federal Reserve would have a clearer path to implement these cuts.
The US 10-year Treasury yield held steady but has dropped nearly 0.2% since the start of the month, indicating traders' optimism for rate cuts this year.
The end of the week also brings potential market catalysts with JPMorgan Chase & Co (NYSE:JPM), Citigroup Inc (NYSE:C), and Wells Fargo & Company (NYSE:WFC) set to report their second-quarter results, marking the kick-off of the earnings season.
On Monday, chip-related stocks led the charge, with Super Micro Computer Inc (NASDAQ:SMCI), Intel Corporation (NASDAQ:INTC), and Advanced Micro Devices Inc (NASDAQ:AMD) all gaining at least 4%. Corning Incorporated (NYSE:GLW), the maker of glass for TV screens and smartphones, saw a 12% jump, benefiting from advancements in AI and increased sales guidance.
In contrast, Nike Inc (NYSE:NKE) shares dropped to a more than four-year low of around $73 following its disappointing quarterly results last month.
In commodity markets, Brent crude oil dropped 0.9% to US$85.75 a barrel, while gold remained flat at US$2,358.83.
Chinese shares ended lower, led by software and property stocks, with the Shanghai Composite Index falling 0.9%. Investors are analyzing the latest batch of Chinese economic data, which indicates a significant slowdown in growth momentum.
Hong Kong shares closed lower, with almost all sectors ending in the red due to concerns about China's tax reforms.
Japanese stocks also ended lower, with the Nikkei Stock Average falling 0.3% to 40,780.70. In contrast, India's Sensex closed marginally lower, while the UK's FTSE 100 Index dropped 0.1% to 8,193.49.
Other European markets were mixed, with the STOXX Europe 600 Index at 516.43, Germany's DAX at 18,472.05, and France's CAC 40 falling 0.6% to 7,627.45