Investing.com - Asian shares staged a bit of a rebound on Tuesday outside of Tokyo with the overhang from two days of weak tech stock performance in the U.S. shrugged off.
In Japan, the Nikkei 225 dipped 0.07%. Tech stocks in Japan were mixed, with most companies trading lower. Sharp was down by 2.31% and Yahoo (NASDAQ:YHOO) Japan tumbled 2.05%, but Fujitsu added 1.77%.
South Korea's benchmark Kospi index rose 0.5%. Shares of South Korea's Hyundai gained 2.15% following news the automaker would be exporting its Kona SUV model to Europe and the U.S. later this year. The electric SUV will be able to cover 390 kilometers per charge, according to Reuters.
Down Under, the S&P/ASX 200 surged 1.17% after markets re-opened following a public holiday. Markets were driven by broad-based strength, with the financials sub-index leading gains and trading higher by 1.88%. The National Australia Bank released its May business confidence survey that showed a plus-7 figure, down from the previous reading at plus-13 and its business survey at plus-12, also down from the previous figure at plus-14.
"The strength looks to be quite broad-based, with all industries recording positive business conditions for only the second time since 2010," said NAB chief economist, Alan Oster.
Hong Kong's Hang Seng Index gained 0.52%, while the Shanghai Composite added 0.36%.
Overnight, U.S. stocks made a poor start to the week, closing in negative territory, as investors continued to ditch tech stocks, extending the tech tumble for a second straight day.
Mizuho stoked fears that the valuation of the technology giant may have peaked, after the bank noted that strong iPhone 8 sales in the upcoming production cycle, may have already been priced into Apple’s shares at recent levels.
"We believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside from here on out," Mizuho managing director, Americas research, Abhey Lamba, said in a Sunday note.
Some analysts, however, remained optimistic about investment opportunities in U.S. equity markets, expressing the need to look at different sectors for growth.
“We think the main sector driver will be Financials.” Morgan Stanley (NYSE:MS) said in a research report to clients. “Additional positive catalysts are that the sector remains significantly under-owned, Banks have executed on prudent expense management and the potential for financial deregulation still exists.”
The current tech dump narrative dominating moves in U.S. equities could potentially shift as investors look ahead to the upcoming Federal Reserve interest rate decision on Wednesday, followed by a press conference from Fed chair Janet Yellen.
Investors are expected to pay close attention to the press conference for any clues on the Fed’s plan to reduce its $4.5 trillion balance sheet later this year and any possible shift in tone on future interest rate increases in the wake of weak U.S. economic data.
The U.S. economy created far fewer jobs than expected in the month of May while a slump in energy prices is expected to weigh on the pace of inflation. In corporate news, General Electric (NYSE:GE) CEO Jeff Immelt announced that John Flannery, current president and CEO of GE Healthcare, will take over as chief executive in August.
The Dow Jones Industrial Average closed lower at 21,235.67. The S&P 500 lost 0.10% while the Nasdaq Composite closed at 6175.46, down 0.52%. The Nasdaq lost more than 100 points at close on Friday.