Bombay Gate Gateway of India, Mumbai
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Asia-Pacific markets rose Tuesday with several benchmarks in the region soaring, tracking gains on Wall Street.
South Korea’s Kospi led gains in the region, jumping more than 6%, briefly triggering a temporarily halt in purchase orders. Index heavyweights SK Hynix and Samsung Electronics rose over 8% and 10%, respectively, after slumping on Monday.
While yesterday’s sharp decline shook investors, some are looking at it as a technical correction following an unprecedented rally, said MS Hwang, research director at Counterpoint.
“Despite the volatility, the ‘long’ case for Korea seems to remain intact because, bottom line, the structural bull case is now centered on the memory cycle,” he said.
The Korea Exchange said the trigger occurred after KOSPI 200 futures climbed more than 5% for over one minute. On Monday, a sidecar was also activated on the sell side after the Kospi 200 futures dropped as much as 5%.
Meanwhile, the small-cap Kosdaq rose 2.59%
India’s Nifty 50 rose nearly 5% at the open after U.S. President Donald Trump said Washington and New Delhi had struck a trade deal and would immediately begin cutting tariffs on each other’s goods.
Trump added that Indian Prime Minister Narendra Modi had agreed to step up purchases of U.S. products, according to a Truth Social post on Monday following a call between the two leaders.
Under the deal, India will also stop its purchases of Russian crude oil and instead buy more from the U.S., and potentially, Venezuela, Trump added.
The Nifty 50 was last up 2.73%, while the BSE Sensex rose 2.66%.
Japan’s Nikkei 225 rose more than 3% to a record high, while the Topix added 2.34%.
Hong Kong Hang Seng Index advanced 0.48%, while the mainland’s CSI 300 was up 0.75%.
Australia’s S&P/ASX 200 climbed 1.3%. Australia’s central bank raised its policy rate by 25 basis points to 3.85% on Tuesday, marking the Reserve Bank of Australia’s first rate hike since November 2023 as inflation stays elevated.
The Reserve Bank of Australia’s move matched Reuters estimates and followed data showing inflation was at its highest level in six quarters.
Senior RBA officials have repeatedly pushed back against expectations of rate cuts. Earlier this year, Reserve Bank of Australia Deputy Gov. Andrew Hauser said the likelihood of near-term rate cuts was “probably very low,” citing persistently high inflation. The central bank has an inflation target of 2.5%.
Investors will continue monitoring gold and silver prices following recent volatility which saw silver prices plunge around 30% last Friday, marking the metal’s worst one-day performance since 1980. Gold also dropped almost 10%.
Spot gold last gained about 2.22% to $4,769.33 per ounce, while silver added about 3.81% to $82.39 per ounce.
Overnight in the U.S., equities rose as Wall Street began a new month of trading, with investors looking past the recent losses in silver and bitcoin.
The Dow Jones Industrial Average advanced 1.05%, closing at 49,407.66, while the S&P 500 was up 0.54% and settled at 6,976.44. The Nasdaq Composite also gained 0.56% and ended at 23,592.11.
—CNBC’s Lim Hui Jie, Sean Conlon and Fred Imbert contributed to this report.
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