Asian Stock Market: Most stock markets rise on technology stocks recovery

• Asian stock markets rise due to the rebound of technology stocks.
• Chinese stocks underperform due to disappointing LPR cuts.
• Traders turn cautious ahead of Fed Chair Powell’s speech on Friday.

The Asian stock markets experienced an uptick on Tuesday propelled by the rebound of technology stocks. However, concerns regarding the tightening of monetary policy by the Federal Reserve (Fed) and China's economic challenges acted as a limiting factor to the extent of these gains.

At the time of writing, China’s Shanghai is down 0.24% to 3,085, the Shenzhen Component Index declines 0.73% to 10,224, and Hong Kong’s Hang Sang rises 0.12% to 17,634. India’s NIFTY 50 is up 0.01%, South Korea’s Kospi rises 0.50%, and Japan’s Nikkei gains 0.77%.

Chinese stocks underperform on Tuesday, largely due to traders' sentiments being significantly impacted by China's economic challenges, triggered by the People's Bank of China (PBoC) disappointing the Loan Prime Rate (LPR) by 10 basis points (bps), falling short of the anticipated 15 bps reduction. This move suggests that China may be prioritizing the support of current borrowers over bolstering credit expansion.

The rise in United States (U) Treasury yields keeps traders cautious ahead of the Jackson Hole event this week. Investors will likely watch Fed Chairman Jerome Powell’s speech at the Jackson on Friday. The speech may offer insights into economic circumstances and signals as to whether inflation is under control or if further interest rate hikes are necessary to curb inflation.