US futures and Asian stocks advance following a rally on Wall Street

HONG KONG (AP) — Asian stocks were mostly higher Tuesday after an AI-led rally on Wall Street ahead of major corporate earnings and central-bank decisions.

U.S. futures edged higher and oil prices extended losses.

South Korea’s Kospi jumped more than 4% and was trading 3.6% higher at 5,667.99 by midday. Computer chipmaker SK Hynix surged 7% and Samsung Electronics gained 4.8%.

Tokyo’s Nikkei 225 added 2.2% to 63,542.77. Testing equipment maker Advantest jumped more than 10% and OpenAI investor SoftBank Group climbed 7%.

Hong Kong’s Hang Seng gave up early gains, slipping 0.2% to 23,174.44, while the Shanghai Composite edged 0.1% lower to 3,692.58.

Traders were watching for any major announcements from a closed-door high level meeting, or plenum, of China’s ruling Communist Party.

Taiwan’s Taiex rose 0.5%.

In Australia, the S&P/ASX 200 advanced 0.3% to 8,838.10.

On Monday, the S&P 500 rose 0.7% and more than recovered its losses from last week, pulling within 1.8% of its all-time high set earlier this month. The Dow Jones Industrial Average added 0.3%, and the Nasdaq composite climbed 0.8%.

The strongest lift for the market came from Nvidia, which rose 2.4%. That helped the chip company recover some of its drop from three straight losing weeks, its longest such streak since June.

But stocks elsewhere in the artificial-intelligence industry remained unsettled. They’ve been swerving on worries about whether their industry’s boom is under threat because of how expensive it’s become for companies to borrow money to build data centers and buy more AI chips.

Meta Platforms bounced up and down after outlining plans to raise $35 billion by selling stock to help pay for its AI investments. It also said Nvidia, Advanced Micro Devices and Broadcom have already indicated they may buy a total of $5 billion of stock in its offering.

Anthropic, one of the key players of the AI boom, gave details Monday about how much money it’s losing as it prepares to sell its stock on the publicly traded U.S. market for the first time.

SpaceX, Elon Musk’s rocket company that also runs the xAI business, had similar swings after it announced a roughly $40 billion deal with an entity managed by Apollo Global Management to lease AI computing power.

Profit reports from huge tech companies this week could offer more details about how spending on AI is going, and whether it’s producing the profits and productivity that proponents promised.

Alphabet and Microsoft will report their latest quarterly results on Wednesday, with Amazon to follow on Thursday.

Roughly one out of every three stocks in the S&P 500 is scheduled to report its latest quarterly results this week.

In stock markets abroad, Brazilian stocks fell sharply after President Luiz Inácio Lula da Silva won reelection in a result that surprised investors. They worry he could increase government spending and put more pressure on the country’s debt. The Bovespa stock index in Brazil dropped roughly 14%.

In the U.S. bond market, yields fell for longer-term Treasurys. The yield on the 10-year Treasury eased to 4.98% from 5.00% late Friday.

The two-year Treasury yield rose to 4.71% from 4.69% late Friday. It more closely tracks expectations for what the Federal Reserve will do with overnight interest rates, and the widespread expectation is that it will wrap up its latest meeting Wednesday without changing the federal funds rate.

The Fed last month hiked the fed funds rate for the first time in three years in hopes of slowing inflation, which has remained much higher than anyone would like.

In other dealings early Tuesday, Brent crude oil, the international standard, fell 0.8% to $109.82 a barrel. U.S. benchmark crude also dropped 0.8%, to $100.93 per barrel.

The dollar rose to 157.65 Japanese yen from 157.50 yen. The euro slipped to $1.1173 from $1.1176.

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AP Business Writer Stan Choe contributed to this report.