Prime Highlights:
- Japan, South Korea, and India led a sharp rebound in Asian markets, with Japan’s Nikkei 225 reaching a record high.
- S.-India trade agreement and strong technology sector growth boosted investor confidence across the region.
Key Facts:
- South Korea’s Kospi jumped nearly 7%, while SK Hynix and Samsung Electronics climbed over 9% and 11%, respectively.
- Australia’s central bank raised its policy rate to 3.85%, and gold and silver prices recovered after recent steep declines.
Background:
Asian stock markets rose sharply on Tuesday after positive news from U.S.-India trade talks and gains on Wall Street, with Japan, South Korea, and India seeing the biggest increases.
Japan’s Nikkei 225 climbed 3.92% to a record 54,720.66, while the Topix added 3.1% to close at 3,645.84. South Korea’s Kospi led the regional rally with an impressive nearly 7% jump to 5,288.08, briefly triggering a temporary trading halt, known as a “sidecar.” Technology leaders SK Hynix and Samsung Electronics jumped over 9% and 11%, bouncing back after Monday’s drop. The smaller-cap Kosdaq index rose 4.19% to 1,144.33.
India’s markets also responded to positive trade developments. U.S. President Donald Trump announced that Washington and New Delhi had agreed on a trade deal, which includes reducing tariffs on each other’s goods. Trump added that Indian Prime Minister Narendra Modi would increase purchases of U.S. products, while India would shift away from Russian crude oil in favor of U.S. and possibly Venezuelan supplies. Following the announcement, the Nifty 50 jumped nearly 5% at open and was last up 2.73%, while the BSE Sensex rose 2.66%.
Hong Kong’s Hang Seng Index edged higher by 0.22% to 26,834.77, while China’s CSI 300 gained 1.18% to 4,660.11. In Australia, the S&P/ASX 200 advanced 0.89% to 8,857.1 after the Reserve Bank of Australia raised its policy rate by 25 basis points to 3.85%, reflecting persistent inflation pressures.
Investors also monitored commodities, with gold and silver rebounding after recent sharp declines. Spot gold rose around 6% to $4,938.6 per ounce, while silver jumped nearly 10% to $86.96 per ounce, following last week’s volatility.
The positive sentiment in Asia mirrored Wall Street’s gains, where the Dow Jones climbed 1.05% to 49,407.66, the S&P 500 rose 0.54% to 6,976.44, and the Nasdaq gained 0.56% to 23,592.11. Analysts said recent market swings are normal after a strong rally, but growth in technology and trade continues to boost investor confidence.