Tech bounce boosts Asian stocks

Tuesday saw gains in most Asian equities as heavyweight technology sectors recovered from a recent decline, but Chinese markets underperformed as their attitude towards the nation didn't much improve.

Regional markets followed Wall Street's robust overnight session, which was mostly driven by a rise in heavyweight tech equities. The forthcoming quarterly results from tech giants Alphabet and Tesla, which are expected later in the day, were the main focus.

Amidst the uncertainties surrounding the U.S. presidential elections, morale remained negative, and U.S. stock index futures saw a downward slide in Asian trade.

Though tech-heavy indices in Asia had some respite on Tuesday, they were still nursing sharp losses from the previous week due to investor rotation into industries more likely to profit from an economic rebound as a result of expectations on interest rate decreases.

Following President Joe Biden's withdrawal and his endorsement of Vice President Kamala Harris as the Democratic contender, Asian equities were likewise severely damaged by a lacklustre appetite for risk in the context of heightened uncertainty surrounding the US presidential contest.

Donald Trump, the Republican nominee, stated that Harris will be simpler to beat. According to CBS and HarrisX statistics, he was also shown polling ahead of Biden and Harris, however this was before Biden withdrew.

Despite the People's Bank of China's unexpected interest rate decrease on Monday, sentiment towards the country did not appear to be improving. Analysts said the cut was too tiny to have a significant impact.

Investors were mostly unimpressed with the Chinese Communist Party's Third Plenum, as Beijing revealed little information about its intentions for more stimulus.

However, the primary factor influencing Chinese markets was conjecture about a Trump presidency. Trump has continued to take a stern stand against China, and he may further restrict trade, infuriating Beijing.

(Sources: investing.com, reuters.com)