CANBERA (dpa-AFX) - Asian stocks extended a global record run on Tuesday as investors overlooked geopolitical tensions and looked ahead to the release of key U.S. economic data for direction.
A report showed U.S. manufacturing activity shrank in December by the most since 2024, boosting bets for more policy easing by the Federal Reserve.
The dollar index retreated on improved risk sentiment after U.S. President Donald Trump affirmed in an interview with NBC News that his country is not at war with Venezuela.
Gold added to strong overnight gains to hover above $4,460 an ounce while oil prices eased after settling up $1 a barrel in the previous session on concerns about the possible impact on crude flows from Venezuela, home to the world's largest oil reserves.
China's Shanghai Composite index jumped 1.50 percent to 4,083.67, reaching its highest level in more than a decade ahead of the Lunar New Year holiday.
Hong Kong's Hang Seng index surged 1.38 percent to 26,710.45, driven by gains in the financial sector.
Japanese markets rallied to set another record after a broad rally on Wall Street overnight.
The Nikkei average climbed 1.32 percent to 52,518.08, led by oil-related stocks and precision tools maker Disco Corp., which soared 6.1 percent. The broader Topix index closed 1.75 percent higher at 3,538.44.
Seoul stocks surged to finish at a new record high, buoyed by gains for semiconductors, brokerages and shipbuilders. The Kospi average jumped 1.52 percent to 4,525.48.
Australian stocks gave up early gains to end lower due to valuation concerns and portfolio rebalancing. The benchmark S&P/ASX 200 dropped 0.52 percent to 8,682.80 while the broader All Ordinaries index slipped 0.42 percent to 8,996.90.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.56 percent to 13,663.58, closing near a six-week high after the U.S. military operation in Venezuela sparked optimism about future investment in the U.S. oil industry.
U.S. stocks rose overnight after the U.S. captured Venezuelan leader Maduro over the weekend and President Trump called for American energy giants to rebuild the country's energy sector.
Investors shrugged off data that showed economic activity in the U.S. manufacturing sector contracted in December for the 10th consecutive month.
The Dow surged 1.2 percent to reach a new record closing high, while the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite advanced 0.7 percent.
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