Investing.com– Most Asian stocks rose on Tuesday as the region’s technology stocks tracked overnight gains on Wall Street, while Chinese markets slumped after the US added two major companies to tech on a blacklist.

Regional markets took positive cues from a strong overnight session on Wall Street, as technology stocks bounced back from a weak start to the year. Artificial intelligence darling NVIDIA Corporation (NASDAQ: ) was a standout performer, hitting a record high in anticipation of an address by CEO Jensen Huang at the Consumer Electronics Show in Las Vegas.

US stock index futures were somewhat positive in Asian trade, keeping the focus on key data due later in the week.

But despite Tuesday’s gains, most Asian markets are still bracing for a weak start to 2025, amid continued concerns over US interest rates remaining high for longer.

Asian tech stocks track US gains; Nvidia in focus

Tech-heavy bourses were the best performers in Asia on Tuesday, with Japan’s index surging 2.4%, while South Korea’s added 0.9%.

Japan’s index rose 1%.

Tech stocks rallied to track their US peers, buoyed by a mix of artificial intelligence hype, as well as some bargain buying after losses clocked in to December.

Nvidia’s Huang is widely expected to provide more details on the company’s upcoming Blackwell AI chips, while any comments on AI demand will also be closely watched.

AI was a key support point for the tech sector last year, with chipmakers benefiting from increased capital spending in the sector, while software firms raced to provide their own AI offerings.

Chinese stocks lag after Tencent, CATL added to US blacklist

China and indices moved in a tight range, while Hong Kong fell 0.5%.

The Hang Seng was weighed down mainly by losses in internet giant Tencent Holdings Ltd (HK: ) and Tesla (NASDAQ: ) battery supplier Contemporary Amperex Technology Co Ltd (SZ: ), which both lost 5%.

Both companies have been added to a US blacklist of companies with ties to the Chinese military. While the inclusion of the blacklist does not include any direct restrictions on the companies, it provides barriers to doing business with companies in the US – which represents a major market for Tencent and CATL.

The new additions to the blacklist also raised concerns over deteriorating trade relations between the world’s biggest economies, which are set to worsen amid rising trade tariffs under incoming US President Donald Trump. Trump.

Trump on Monday denied reports that his administration would impose less stringent trade tariffs than those initially signed.

A resurgent trade war does not bode well for China and other Asian economies.

Broader Asian markets were mostly positive. Australia added 0.2%, while Singapore’s index rose 0.1%.

for the Indian index pointed to a slightly positive open, after the index fell by 1.6% on Monday. Weak returns from index heavyweights HDFC Bank Ltd (NS:) and Dabur in India Ltd. (NS:) hurt sentiment, especially ahead of more earnings from major Indian companies, due in the coming days.