Asia's Stock Markets Stabilize Amid Semiconductor Resurgence

Asian stock markets stabilized as semiconductor shares rebounded, breaking a losing streak. China's weak demand outlook dragged commodity prices down, while investors shifted focus to U.S. earnings and data. Bonds were steady, the dollar held firm, and major currencies experienced modest fluctuations.

Asia's stock markets steadied on Tuesday as semiconductor shares bounced back to break an expensive losing streak, while a bleak demand outlook from China dragged down commodity prices and investors turned their attention to U.S. earnings and data. Bonds held firm and the dollar was steady on most majors save for the yen, which rose about 0.5%, and the Australian and New Zealand currencies, which sagged in sympathy with metals.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%. Japan's Nikkei was flat and Taiwan's benchmark snapped five sessions of losses to rise 2%, tracking a broader rebound in chipmaking shares and recovering some of the $100 billion in market value that was wiped off TSMC over the previous few sessions. European futures rose 0.1% and U.S. futures fell 0.2% following a 1.1% rise in the S&P 500 on Monday.

'Markets are a bit rudderless right now. There's...three competing themes or narratives that have not settled yet,' said Cambridge Associates Asia head and global investment strategist Aaron Costello. On one hand, he said, market wagers on Donald Trump winning back the U.S. presidency had upward pressure on U.S. yields and the dollar, while anticipation of rate cuts in coming months had the opposite effect.