Stocks in Asia are set to rise following a strong finish in the tech sector in the US, which saw the benchmark index extend gains for a third consecutive day, despite concerns over trade tensions.

In the Asian markets, futures suggest a growth of over 0.5% in Tokyo, Sydney, and Hong Kong. The S&P 500 edged up by 0.2%, marking its longest winning streak in nearly seven weeks, even amid a decline in consumer confidence. The US dollar paused its four-day increase and is on pace for its worst month since November 2023. Oil prices dipped following reports of a ceasefire between Russia and Ukraine in the Black Sea.

Market analysts are divided on the future outlook for equities. HSBC Holdings Plc downgraded US stocks due to economic worries, while JPMorgan Chase & Co.’s Ilan Benhamou sees potential for the rally to continue as clarity on tariffs reduces some risks.

According to Steve Sosnick of Interactive Brokers, market sentiment can be fragile, influenced by emotions such as fear and greed. The Nasdaq 100 and tech megacaps experienced gains, with Tesla Inc. rising and Nvidia Corp. falling. However, US-listed Chinese companies saw a decline.

US Treasury yields dropped, the dollar weakened slightly, and US copper prices surged to a record high. In Asian trading, the Indonesian rupiah recovered after the central bank intervened to support the currency from its weakest point since the Asian financial crisis.

Analysts like Matt Maley at Miller Tabak emphasize the recent market rebound as positive but caution about potential future uncertainties. Charles Ashley at Catalyst Funds expects market volatility in the short term due to uncertainty over policies, but suggests there are no extreme pricing discrepancies yet for discerning investment opportunities.