Australia stocks higher at close of trade; S&P/ASX 200 up 0.89%

Investing.com-- Asian stock markets rebounded sharply on Tuesday, with South Korea and Japan leading gains amid a rally in AI-related shares, while investors awaited the Reserve Bank of Australia’s policy decision later in the day.

The rebound followed a firm finish on Wall Street overnight, with gains in technology and chipmaking stocks. Investors are awaiting key earnings this week, including from Amazon and Alphabet.

U.S. stock index futures edged higher during Asian hours on Tuesday.

KOSPI jumps 5%, Nikkei climbs 3% on tech rally

Sentiment toward AI-related stocks has been volatile in recent sessions. Optimism around rapid adoption and strong long-term growth prospects had given way to sharp profit-taking after Microsoft's (NASDAQ:MSFT) results highlighted heavy capital spending requirements, raising questions about margins in the near term.

However, Tuesday’s rally suggested investors were willing to look past short-term headwinds, betting that demand for AI infrastructure will continue to support chipmakers and technology suppliers.

Seoul’s KOSPI index surged nearly 5%, with heavyweight chipmakers Samsung Electronics (KS:005930) and SK Hynix (KS:000660) jumping between 6.5% and 8%.

Investors returned to AI-linked stocks on expectations that long-term demand for high-end memory and processors remains intact.

Japan’s Nikkei 225 index climbed more than 3%, buoyed by a broad rally in chipmakers and technology shares, and helped by a weaker yen.

Bucking the regional trend, Hong Kong's Hang Seng index declined over 1%.

In mainland China, the Shanghai Shenzhen CSI 300 index slipped 0.4%, while the Shanghai Composite traded flat.

Elsewhere, Australia's S&P/ASX 200 climbed 1.1%, while Singapore's Straits Times Index added nearly 1%.

US, India sign trade deal; RBA decision on tap

Futures for India's Nifty 50 jumped over 1% before the market opened. U.S. President Donald Trump on Monday announced a trade deal with India, reducing tariffs on Indian goods to 18% from 50%.

The announcement followed months of negotiations during which punitive tariffs had risen as high as 50%, and was widely seen as a step toward normalising trade ties. The deal reportedly entails India phasing out Russian oil purchases and expanding imports of U.S. energy and other goods.

Attention in the region now turns to the Reserve Bank of Australia, which is due to announce its interest rate decision later on Tuesday.

Economists and markets have priced in a 25-basis-point hike to lift the cash rate to around 3.85%, reversing the RBA’s brief easing cycle amid persistently strong inflation data and tighter labour market conditions.

Investing.com-- Asian stock markets rebounded sharply on Tuesday, with South Korea and Japan leading gains amid a rally in AI-related shares, while investors awaited the Reserve Bank of Australia’s policy decision later in the day.

The rebound followed a firm finish on Wall Street overnight, with gains in technology and chipmaking stocks. Investors are awaiting key earnings this week, including from Amazon and Alphabet.

U.S. stock index futures edged higher during Asian hours on Tuesday.

KOSPI jumps 5%, Nikkei climbs 3% on tech rally

Sentiment toward AI-related stocks has been volatile in recent sessions. Optimism around rapid adoption and strong long-term growth prospects had given way to sharp profit-taking after Microsoft's (NASDAQ:MSFT) results highlighted heavy capital spending requirements, raising questions about margins in the near term.

However, Tuesday’s rally suggested investors were willing to look past short-term headwinds, betting that demand for AI infrastructure will continue to support chipmakers and technology suppliers.

Seoul’s KOSPI index surged nearly 5%, with heavyweight chipmakers Samsung Electronics (KS:005930) and SK Hynix (KS:000660) jumping between 6.5% and 8%.

Investors returned to AI-linked stocks on expectations that long-term demand for high-end memory and processors remains intact.

Japan’s Nikkei 225 index climbed more than 3%, buoyed by a broad rally in chipmakers and technology shares, and helped by a weaker yen.

Bucking the regional trend, Hong Kong's Hang Seng index declined over 1%.

In mainland China, the Shanghai Shenzhen CSI 300 index slipped 0.4%, while the Shanghai Composite traded flat.

Elsewhere, Australia's S&P/ASX 200 climbed 1.1%, while Singapore's Straits Times Index added nearly 1%.

US, India sign trade deal; RBA decision on tap

Futures for India's Nifty 50 jumped over 1% before the market opened. U.S. President Donald Trump on Monday announced a trade deal with India, reducing tariffs on Indian goods to 18% from 50%.

The announcement followed months of negotiations during which punitive tariffs had risen as high as 50%, and was widely seen as a step toward normalising trade ties. The deal reportedly entails India phasing out Russian oil purchases and expanding imports of U.S. energy and other goods.

Attention in the region now turns to the Reserve Bank of Australia, which is due to announce its interest rate decision later on Tuesday.

Economists and markets have priced in a 25-basis-point hike to lift the cash rate to around 3.85%, reversing the RBA’s brief easing cycle amid persistently strong inflation data and tighter labour market conditions.

Investing.com-- Shares of Australia’s NRW Holdings (ASX:NWH) rose on Tuesday after the engineering and mining services group said it had won a major contract from Rio Tinto (ASX:RIO), adding to a series of recent project awards.

NRW said it had been awarded a bulk earthworks contract valued at about A$175 million ($122 million) for Rio Tinto’s West Angelas Sustaining Project in Western Australia. The work will involve providing access to five new satellite mining pits, including haul road construction, a concrete overpass arch, and associated infrastructure.

Sydney-listed shares of the company jumped nearly 7% to A$5.52 as of 01:02 GMT.

The company said work on the Rio Tinto project is expected to begin in early 2026 and run through 2027, with a peak workforce of around 220 people.

Separately, NRW’s wholly owned subsidiary, NRW Contracting, was selected by Main Roads Western Australia for a “construct-only” contract on the reconstruction and realignment of Toodyay Road, with an initial value of A$46 million.

NRW also said it had secured a further contract worth about A$49 million through a 50:50 joint venture for the Dampier Link Bridge project for Pilbara Ports.

The company said no material capital outlay is required for the civil contracts.

Investing.com -- Moody’s Ratings has upgraded OUTFRONT Media Inc.’s Corporate Family Rating (CFR) to Ba3 from B1, citing expectations for more conservative financial management and declining leverage.

The rating agency also upgraded the company’s Probability of Default Rating to Ba3-PD from B1-PD, while the senior unsecured notes ratings of subsidiary OUTFRONT Media Capital LLC were raised to B1 from B2. Moody’s maintained the Ba1 rating on the senior secured bank credit facility and backed senior secured notes. The outlook on all ratings is stable.

Moody’s expects OUTFRONT’s financial leverage to decline to the low 4x range over the next 12-18 months, supported by strong revenue and EBITDA growth. The company’s ongoing conversion of traditional static billboards to digital displays and programmatic advertising is anticipated to produce attractive returns and margin expansion.

As of the third quarter of 2025, OUTFRONT’s Moody’s-adjusted leverage stood at 4.6x, with EBITDA margins exceeding 50%. The company operates approximately 560,000 displays across 120 U.S. markets, including all top 25 markets as of December 31, 2024.

The rating agency highlighted OUTFRONT’s strong market position in the U.S. outdoor advertising industry and noted that the business faces less competition due to the hard-asset nature of billboards and regulatory restrictions that limit supply.

Moody’s did note some risks, including significant concentration in large urban markets like New York City, which accounts for 55% of all displays, and the company’s long-term contract with the New York Metropolitan Transit Authority through 2030, which has "relatively unfavorable economics."

OUTFRONT maintains good liquidity with access to an undrawn $500 million revolver due September 2030 and approximately $63 million in cash as of the third quarter of 2025. The company also has a $150 million accounts receivable securitization facility with no outstanding borrowings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- ACADIA Pharmaceuticals Inc (NASDAQ:ACAD) stock dropped 4.4% in after-hours trading Monday following news that European regulators issued a negative trend vote on the company’s Rett syndrome treatment.

The biopharmaceutical company announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) delivered an unfavorable preliminary opinion on its Marketing Authorization Application for trofinetide. The drug is designed to treat Rett syndrome, a rare genetic neurological disorder.

ACADIA said it plans to request a re-examination of the opinion after the CHMP’s formal vote in February. The company has the right to request this re-examination within 15 calendar days of receiving the opinion, followed by submission of grounds for the request within 60 days.

"While the negative trend vote is disappointing and not what we hoped for, we believe the strong data that supported the approval of trofinetide for the treatment of Rett syndrome in the United States, Canada, and Israel speak to the meaningful benefits that trofinetide can deliver," said Catherine Owen Adams, Chief Executive Officer of ACADIA.

The company noted that more than 1,000 patients globally are currently receiving the treatment, ranging from newly diagnosed 2-year-olds to adults who have lived with the disease for decades. Trofinetide has already received regulatory approvals in several countries including the United States.

ACADIA emphasized its commitment to making the treatment available in the European Union, stating it will work with the EMA and other stakeholders to advance trofinetide as a potential treatment option for Rett syndrome patients in Europe.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.