European equity futures climbed and Asian stocks fluctuated after another record high on Wall Street. Oil dropped as concerns eased about Israel attacking Iranian energy facilities.
Technology shares outperformed in Asia, following their US counterparts higher, while oil and energy stocks dropped after the Washington Post reported that Israel doesn’t plan on striking Iranian oil or nuclear facilities.
Treasury yields ticked lower on Tuesday as the dollar gained against most of its Group-of-10 peers. MSCI’s Asia Pacific Index rose as much as 0.7% on the back of the chip sector, with the likes of Taiwan Semiconductor Manufacturing Co. leading the advance, then erased those gains.
Japan’s Nikkei 225 Stock Average Index reached its highest levels since July. Benchmarks in Australia and Taiwan also advanced.
“APAC-region investors are likely to take a more risk-on approach as we head into the end of the year, bolstered by an improving macro background in the region,” said David Chao, a global market strategist at Invesco Asset Management.
“As long as oil holds steady and the Fed continues to cut rates, I think Asian currencies and risk assets are likely to outperform.”
