HONG KONG (AP) – Asian shares rose Tuesday after another slide for Wall Street heavyweight Nvidia kept U.S. indexes mixed on Monday, even as most stocks rose.
US futures were higher while oil prices were little changed.
Japan’s benchmark Nikkei 225 rose 1% to 39,190.97 after data from the Bank of Japan on Tuesday showed that the producer price index for services in May rose 2.5% from the same period last year, a slowdown from growth of 2.7% seen in April.
The Japanese yen remains in the spotlight, with the US dollar to Japanese yen exchange rate continuing to trade near its weakest level in nearly 34 years. The yen rose to 159.41 per dollar in Tuesday’s trading. The dollar closed at 159.59 yen on Monday.
Hong Kong’s Hang Seng was 0.5% higher at 18,109.80 and the Shanghai Composite index fell 0.3% to 2,953.95.
Australia’s S&P/ASX 200 gained 1.2% to 7,829.70. In South Korea, the Kospi rose 0.4% to 2,774.54.
Elsewhere, Taiwan’s Taiex rose 0.3%, while Bangkok’s SET advanced 0.4%.
On Monday, the S&P 500 fell 0.3% to 5,447.87. The decline for Nvidia and other winners of Wall Street’s artificial intelligence boom dragged the Nasdaq composite down 1.1% to 17,496.82, while the Dow Jones Industrial Average rose 0.7% to 39,411.21.
Oil and gas stocks were among the market’s strongest, as seven out of every 10 stocks in the S&P 500 advanced. Exxon Mobil rose 3% and oilfield services provider SLB gained 4% as oil prices hung near their highest levels since April.
Financial companies were also strong. JPMorgan Chase added 1.3% and Wells Fargo rose 1.6% ahead of results due later in the week on tests from the Federal Reserve on how big banks would fare in a recession.
But declines for a handful of high-profile stocks offset all those gains, and the spotlight shone brightest on Nvidia’s 6.7% decline. It was the third straight decline for the chip company, which was 1,000% higher since fall 2022.
Almost insatiable demand for Nvidia’s chips to power artificial intelligence applications has been a big reason for US stock market records recently, even as economic growth slows under the weight of high interest rates. But the artificial intelligence boom has been so frenetic that it has raised concerns of a potential stock market bubble and sky-high expectations among investors.
Shares of Nvidia have tumbled since it narrowly overtook Microsoft as Wall Street’s most valuable last week, falling nearly 13% in just three days. Because Nvidia has become so massive in size, moves in its stock carry extra weight in the S&P 500 and other indexes. It was the heaviest weight by far on the S&P 500 on Monday.
Other AI beneficiaries also gave up some of their cool benefits. Super Micro Computer fell 8.6% to cut its year-to-date profit below 200%, falling to 190.9%.
Such rotation between stocks can be a healthy sign for the market, as long as it can stick to its highs. Market watchers have been concerned to see just Nvidia and a handful of other companies responsible for most of the S&P 500’s returns of late. They would prefer a market where many stocks are participating in the gains.
In the bond market, Treasury yields eased slightly. The 10-year Treasury yield fell to 4.23% from 4.26% late Friday.
It has been mostly down since reaching 4.70% in late April, which has eased pressure on the stock market. Yields have fallen on hopes that inflation is slowing enough to persuade the Federal Reserve to cut its key interest rate later this year.
The Fed has kept the federal funds rate at its highest level in more than 20 years, hoping to shrink the economy enough to keep inflation under control.
In other deals Tuesday, U.S. benchmark crude rose 6 cents to $81.69 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude added 2 cents to $85.17 a barrel.
The euro rose to $1.0736 from $1.0732.