Signs of renewed negotiations between Iran and the United States lifted market sentiment, driving Asia-Pacific equities higher during Tuesday's early trading session. Technology stocks led the advance, while international oil prices extended declines amid expectations of easing geopolitical tensions.

Iran's Supreme Leader Mujtaba Khamenei approved the dispatch of a negotiation delegation to Islamabad on the evening of the 20th. Reports indicate U.S. Vice President Vance is scheduled to depart for the Pakistani capital on the morning of the 21st Eastern Time, accompanied by Trump envoy Steve Witkoff and presidential son-in-law Jared Kushner to participate in the talks.

Noriko Chen, Equity Portfolio Manager at Capital Group, commented: "The move toward peace talks is clearly a positive signal, suggesting some form of resolution is nearing. We anticipate inflation will be slightly above recent levels but do not expect it to significantly impact the global economy."

While Middle East developments boosted risk appetite, strong export data from South Korea provided additional support for Asia-Pacific markets. According to customs data released on April 21, South Korea's exports during the first 20 days of April increased 49.4% year-over-year, reaching $50.4 billion—a record high for the period and surpassing the previous peak of $36.4 billion set in April 2022.

Driven by investment enthusiasm in artificial intelligence and data centers, semiconductor exports surged 182.5% to $18.3 billion, accounting for 36.3% of total exports and also setting a new record for the period. Exports of computer peripheral equipment soared 399% to $2.2 billion, further confirming robust global demand for data center infrastructure.

The Philadelphia Semiconductor Index rose for the 14th consecutive session overnight, marking its longest winning streak in over a decade. Elon Gu, Market Analyst at Ultima Markets, noted: "Semiconductor momentum continues, supported by record highs in U.S. chip stocks, driving broad strength in the Asia-Pacific tech sector on Tuesday."

Asia-Pacific markets broadly followed the rebound in risk appetite. The MSCI Asia Pacific Index rose 0.5%, with advancing and declining stocks roughly balanced.

The technology sector emerged as the primary driver of the rally. The MSCI Asia Pacific Technology Index advanced 2.1%, extending its year-to-date gain to over 38%. South Korea's KOSPI index climbed 2.2%, reaching a new record high.

Samsung Electronics and SK Hynix led gains, rising 2.6% and 4% at one point, respectively. South Korea's small-cap KOSDAQ index also gained up to 1%.

The Philadelphia Semiconductor Index's 14-day winning streak has been surpassed only once before, in 2014. Fabien Yip, Market Analyst at IG International, stated: "With AI returning to market focus, Asian tech stocks—as core hardware suppliers—are advancing amid a broader recovery in risk sentiment."

In corporate developments, Amazon announced an additional $5 billion investment in Anthropic PBC, with the potential for further investment of up to $20 billion in the future, strengthening their partnership in the increasingly competitive artificial intelligence sector.

Beyond Middle East developments, several macroeconomic events are drawing investor attention this week. March retail sales data will be released on Tuesday, with analysts forecasting a significant jump in overall sales. However, excluding gasoline and automobiles, the data may indicate more moderate consumer demand, as elevated fuel costs have constrained spending among budget-conscious consumers.

Federal Reserve Chair nominee Walsh is scheduled to appear before the Senate Banking Committee at 10 a.m. on Tuesday. According to a preview of his opening remarks, Walsh stated: "I believe monetary policy independence must be earned through action, and better policy decisions depend on operating free from interference. I am committed to ensuring the execution of monetary policy remains strictly independent."

U.S. Treasury markets showed little movement during the Asia-Pacific session on Tuesday, with the 10-year yield edging up 0.1 basis point to 4.255%. S&P 500 index futures rose 0.2%, after the index retreated slightly from record highs on Monday. Spot gold declined 0.25% to below $4,810.

Spot silver remained in a downtrend, falling 0.36% to $79.41.