Asian stock markets rose on Tuesday, tracking overnight gains on Wall Street as investors positioned for a heavy week of U.S. megacap technology earnings, while South Korean shares jumped sharply after reversing early losses sparked by tariff concerns.

U.S. stock indexes closed modestly higher overnight, while futures tied to the tech-heavy Nasdaq index also climbed during Asian hours on Tuesday.

Fed decision, ’Mag 7’ earnings on tap

Regional sentiment was supported by optimism that results from several of the so-called “Magnificent Seven” U.S. technology firms will reinforce the global equity rally driven by AI spending and resilient corporate profits.

Markets are awaiting earnings this week from companies including Microsoft, Meta Platforms, Tesla and Apple. In Asia, Samsung Electronics and SK Hynix will also report their finalized fourth-quarter financial results this week.

Investor focus was also firmly on the Federal Reserve, which begins a two-day policy meeting later on Tuesday.

The U.S. central bank is widely expected to keep interest rates unchanged in its decision on Wednesday, as policymakers assess sticky inflation pressures alongside signs of moderating economic momentum.

Recent data showing a resilient labour market and easing but still-elevated price growth have reinforced expectations that the Fed will pause before considering further moves later in the year.

KOSPI jumps despite Trump tariff hike threats

In South Korea, the benchmark KOSPI jumped over 2%, reversing early mild losses. SK Hynix shares surged 6%, while Samsung rose 3%.

The index had opened lower after U.S. President Donald Trump said he would raise tariffs on South Korean imports to 25% from 15% following delays in trade deal finalization.

The comments briefly sent shares of major Korean automakers tumbling, with Hyundai Motor (KS:005380) and Kia Corp (KS:000270)sliding in early trade on fears of higher export costs.

Sentiment later improved after South Korea’s presidential office said it had not been informed in advance of any tariff hike plans.

Elsewhere, Japan’s Nikkei 225 edged 0.3% higher, though gains were capped by a firmer yen, which tends to weigh on exporters.

Chinese blue chips and Shanghai Composite index advanced slightly, while Hong Kong’s Hang Seng index climbed 1.5%, powered by tech gains.

Australia’s S&P/ASX 200 and Singapore’s FTSE Straits Times Index rose nearly 1% each. 

Futures tied to India’s Nifty 50 edged 0.3% higher.