Asian trading opened with U.S. stock index futures slightly lower on Tuesday, March 17, as investors digested central bank signals and watched geopolitical tensions in the Middle East. Technology stocks helped cushion some losses, reflecting optimism from Wall Street’s overnight gains.

RBA Raises Cash Rate Amid Inflation Concerns

The Reserve Bank of Australia (RBA) increased its cash rate by 25 basis points to 4.10% in a narrowly split 5-4 vote. Policymakers expressed growing concern that inflation may remain elevated for longer than expected, partly due to rising fuel costs linked to the ongoing Middle East conflict.

Despite the rate hike, Australia’s S&P/ASX 200 index edged 0.2% higher, as investors balanced cautious sentiment with optimism in equities. Analysts note that the decision signals a likelihood that monetary policy may stay restrictive to keep inflation in check.

This move precedes other key central bank announcements later this week, with the Federal Reserve expected to reveal its decision on Wednesday and the Bank of Japan concluding its policy meeting on March 19.

Asian Tech Stocks Rise on Wall Street Momentum

South Korea’s KOSPI led regional gains as tech shares surged following a strong performance on Wall Street. Investor sentiment was lifted by Nvidia (NASDAQ: NVDA) CEO Jensen Huang’s unveiling of new AI systems and components at the company’s annual GTC conference, highlighting the continued growth potential in the semiconductor sector.

Most Asian markets ended the day higher, supported by technology and chipmakers, while traders remained vigilant about global tensions and the schedule of upcoming central bank meetings.