Asian stocks advanced on Tuesday as precious metals clawed back some ground after a historic sell-off and U.S. President Donald Trump announced that he agreed to a trade deal with India, helping ease trade tensions.
Gold and silver futures recovered today after a steep sell-off triggered by the nomination of Kevin Warsh as chairman of the U.S. Federal Reserve.
Gold traded up nearly 5 percent at $4,887 an ounce in Asian trading but analysts warned the turbulence isn’t over.
The dollar held on to its gains after the release of upbeat U.S. manufacturing data and amid reports that the House of Representatives will likely pass the shutdown-ending funding package today.
Nevertheless, the U.S. Bureau of Labor Statistics (BLS) announced that the partial government shutdown will cause a delay to the December JOLTs data as well as Friday’s January jobs report.
Oil extended losses in Asian trading after falling more than 4 percent on Monday amid signs of de-escalation in U.S.-Iran tensions. Iran and the United States are set to resume indirect nuclear negotiations on Friday in Istanbul.
Trump has presented a stark choice regarding Iran, stating that reaching a deal would be positive but failure could lead to “bad things.”
China’s Shanghai Composite Index rallied 1.3 percent to 4,067.74 as metal prices recovered and AI optimism prevailed. Hong Kong’s Hang Seng Index edged up by 0.2 percent to 26,834.77 on easing geopolitical tensions.
Japanese markets soared to a record high, with chip-related stocks leading the surge. The Nikkei 225 Index spiked 3.9 percent to 54,720.66 as polls showed Prime Minister Sanae Takaichi’s party is headed towards a landslide victory in the House of Representatives election on Sunday.
It is believed that a strong showing in Sunday’s election would solidify Takaichi’s grip on her party and give her a mandate for her expansionary fiscal policy. The broader Topix Index settled 3.1 percent higher at 3,645.84.
Disco Corp, shot up 7.4 percent, Tokyo Electron surged 4.8 percent and Advantest soared 7.1 percent. While TDK Corp. spiked 11.4 percent on robust financial results, Yamaha Motor plunged 10.1 percent on a profit warning.
In South Korea, stocks shot up by the most in six years to hit a record high due to bargain hunting, following the previous day’s plunge.
The Kospi soared 6.8 percent to 5,288.08, led by technology stocks. Samsung Electronics and SK Hynix surged 11.4 percent and 9.3 percent, respectively.
Australian markets recovered from a three-week low as the Reserve Bank of Australia raised its benchmark policy rate for the first time in two years and signaled another move is on the table to curb higher inflation.
The benchmark S&P/ASX 200 Index advanced 0.9 percent to 8,857.10, boosted by mining and gold stocks. The broader All Ordinaries Index closed up 0.9 percent at 9,149.30.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index finished marginally higher at 13,421.52 after a choppy session.
U.S. stocks rose overnight as U.S.-Iran tensions eased and data showed factory activity grew for the first time in a year in January, helping traders shrug off renewed uncertainty over U.S. monetary policy.
The Dow rallied 1.1 percent, the tech-heavy Nasdaq Composite climbed 0.6 percent and the S&P 500 gained half a percent.
Business News
Asian Shares Climb As Precious Metals Rebound
2026-02-03 08:37:40
