Asian Markets Rise on Wall Steet Tech Rally; Meta & AMD Surge

EUR/USD posted modest gains around 1.1470 during Tuesday’s early Asian trading session, as hopes for progress in Middle East diplomacy provided some support to risk-sensitive assets, including the Euro. Traders are now awaiting further comments from Federal Reserve officials later on Tuesday for fresh direction.

President Masoud Pezeshkian is expected to lead an Iranian delegation at the United Nations General Assembly in New York on Tuesday, amid renewed hopes for a diplomatic solution to the conflict in the Middle East, according to CNBC. Markets will closely monitor developments surrounding potential US-Iran talks. US President Donald Trump has also indicated that he would “probably” be open to meeting his Iranian counterpart on the sidelines of the UN General Assembly.

However, rising political uncertainty in Germany could weigh on the Euro. The far-right Alternative for Germany emerged as the leading party in state elections in northeastern Germany on Sunday, while Chancellor Friedrich Merz’s conservative party suffered its worst regional election defeat in postwar Germany. The results have increased political uncertainty and could put additional pressure on the shared currency.

Meanwhile, hawkish comments from Federal Reserve officials could support the US Dollar and limit further gains in EUR/USD. Chicago Fed President Austan Goolsbee said on Monday that US inflation may have moved beyond the tariff and energy-price shocks seen over the past 18 months and is now also being driven by strong demand. This could require the Federal Reserve to increase interest rates at a faster pace.

Gold price declined during Tuesday’s early Asian trading session, snapping a two-day winning streak as expectations for further monetary tightening by the US Federal Reserve weighed on the precious metal.

Hawkish signals from Federal Reserve policymakers regarding the possibility of further interest rate hikes have pressured Gold. Last week, the US central bank raised its benchmark interest rate by 25 basis points to a range of 3.75%-4.0%. Markets are now pricing in a nearly 90.3% probability of another US rate hike in December, according to the CME FedWatch Tool.

St. Louis Fed President Alberto Musalem said on Monday that additional interest rate increases may be necessary to bring inflation back toward the central bank’s target. He also noted that monetary policy could still be providing stimulus to the economy following this month’s rate increase. Higher interest rates generally weigh on Gold because the precious metal does not generate interest, making yield-bearing assets relatively more attractive.

However, expectations of diplomatic progress in the Middle East and easing concerns over supply could help limit Gold’s downside. CNBC reported on Monday that Iranian President Masoud Pezeshkian is expected to travel to the United Nations General Assembly in New York on Tuesday, amid renewed hopes for a diplomatic solution to the Middle East conflict.

Oil prices edged higher in Asian trading on Tuesday after four consecutive sessions of losses, as investors focused on the possibility of talks between the United States and Iran on the sidelines of the United Nations General Assembly this week.

Both benchmarks extended modestly higher after sharp losses in the previous session.

US President Donald Trump has said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to travel to New York for the UN General Assembly. Iran has also reportedly conveyed conditions for resuming negotiations through mediators, raising hopes that diplomatic efforts could help de-escalate tensions and reduce the risk of further disruptions to oil supplies.

Supply concerns have also eased after Saudi Arabia reportedly increased crude shipments through the Strait of Hormuz following disruptions to its East-West pipeline. Saudi oil flows through the strategic waterway averaged around 2.9 million barrels per day over the past six days, significantly higher than August levels, according to satellite data cited by Reuters.

However, the oil market remains vulnerable to renewed supply disruptions. Yemen's Iran-aligned Houthi militants have continued attacks on Saudi targets, while Saudi Arabia continues to face constraints affecting some export routes. Britain has also agreed to provide limited military support to Saudi Arabia as Riyadh deals with attacks from Houthi forces in Yemen.

Investors are also monitoring a planned meeting between US President Donald Trump and Chinese President Xi Jinping later this week, with trade and geopolitical issues expected to be on the agenda. As the world's largest oil importer, China's economic outlook and trade relations remain important factors for global crude demand. Any signs of stronger economic activity or improved trade relations could influence expectations for future oil consumption.

US stocks surged on Monday, with the Nasdaq Composite reaching its first record closing level since June 2 as investors returned to technology and artificial intelligence stocks. A decline in oil prices also supported broader market sentiment, while investors looked ahead to Chinese President Xi Jinping’s planned visit to Washington later this week.

Technology and communication services stocks were the strongest performers on Monday. The S&P 500 communication services sector climbed 3.9%, while the technology sector gained 2.5%.

Meta Platforms was among the biggest contributors to the rally, with its shares rising 11.4%. The company announced plans for what it described as a first-of-its-kind transoceanic subsea cable connecting France and the United States.

The gains came ahead of Meta Connect 2026, scheduled for Wednesday and Thursday, where the company is expected to showcase developments in artificial intelligence, AI-powered glasses and virtual reality. Meta’s consumer AI assistant, Muse, is also expected to receive significant attention.

The broader AI theme extended beyond Meta. Arm and Intel shares rose 17.2% and 12.2%, respectively, while AMD gained nearly 10%, pushing its market capitalization above $1 trillion for the first time. According to Vital Knowledge, the growing use of agentic AI could increase demand for central processing units as these systems perform continuous background tasks, logic processes and data orchestration.

Investors are also watching whether discussions between Trump and Chinese President Xi Jinping could include developments involving Iran.