Asian equities struggle to sustain Wall Street rebound as yen lingers at 40-year lows

Asian equity markets displayed mixed signals on Tuesday, failing to fully capitalize on a rebound in US technology stocks.

While tech-heavy indices in the region managed to bounce back from a heavy two-week selling spell, broader market participation remained limited.

The divergence highlights a cautious sentiment among regional investors, who are hesitant to chase US-led rallies amid lingering uncertainty.

The Japanese yen remained a focal point of market attention, holding near a 40-year low against the dollar.

This extreme depreciation continues to weigh on import costs and domestic purchasing power, even as it provides a tailwind for export-oriented multinationals.

The currency's stability at these historic lows suggests that market participants are pricing in a prolonged period of divergence between US and Japanese monetary policy.