Asian stock markets ended the quarter on a strong note on Tuesday, extending gains supported by technology stocks, easing energy prices, and optimism surrounding the global economic outlook. Japan's Nikkei rose 1.6% during the session and was on track to record a quarterly gain of more than 38%, while South Korea's KOSPI advanced 3%, driven by strength in semiconductor companies.

Investor sentiment improved as crude oil prices retreated to levels seen before recent geopolitical tensions. Brent crude traded near $72.5 per barrel, reducing concerns over inflation and supporting expectations of stronger global economic growth and improved corporate earnings.

Wall Street's positive overnight performance also supported Asian markets, while European equity futures pointed to a firm opening. Market participants remained focused on upcoming US economic data, including employment figures and remarks from Federal Reserve officials, which could provide further clarity on the interest rate outlook.

The US dollar remained strong after investors reassessed expectations for Federal Reserve policy, shifting from anticipating rate cuts to pricing in the possibility of higher interest rates due to resilient economic growth and persistent inflation. The stronger dollar pushed the Japanese yen to around a four-decade low against the US currency, prompting Japanese authorities to reiterate their readiness to intervene if necessary.

Elsewhere, Chinese manufacturing activity expanded in June, supported by robust high-technology exports, while investors also monitored upcoming inflation data from Europe and US consumer confidence and labour market indicators.

Technology-led markets remained the best-performing regions during the quarter. Taiwan's benchmark index was set to post gains of more than 46%, while South Korea continued to benefit from the global semiconductor rally. In contrast, Hong Kong's Hang Seng Index underperformed, heading for a quarterly decline of around 7.5%.

Despite the strong rally in technology stocks, institutional investors continued to reduce exposure in some Asian markets through portfolio rebalancing and profit booking. Analysts noted that investors are increasingly seeking diversification by allocating capital to sectors such as defence, renewable energy, and other non-technology themes.