TOKYO (AP) - Asian shares saw significant gains on Tuesday, with South Korea's benchmark index climbing 5% and Tokyo's Nikkei 225 index rallying 3% as investors turned to technology-related shares. The market movements come in anticipation of upcoming earnings reports from major companies, which analysts suggest will provide insights into the economic landscape shaped by U.S. President Donald Trump's tariffs and potential restrictions on rare earth exports from China.
In Japan, the Nikkei 225 surged 3.2% to reach 54,346.33. Notably, shares of equipment manufacturer Disco Corp. rose by 6%, while testing equipment maker Advantest experienced a 5.6% increase. This reflects a broader trend in the market, where technology stocks have become a focal point for investors.
South Korea's Kospi index rebounded sharply, gaining 5% to climb to 5,197.86, nearing its record high after a turbulent trading session that resulted in temporary trading suspensions on Monday. Investor confidence was restored, particularly following fears of a possible bubble in artificial intelligence. Shares in major tech firm Samsung Electronics Co. increased by 6.9%, while chipmaker SK Hynix saw a remarkable rise of 7.5%.
In contrast, Hong Kong's Hang Seng index remained relatively stable, closing nearly flat at 26,786.47, while China's Shanghai Composite index added 0.4% to end the day at 4,031.07. Meanwhile, Australia's S&P/ASX 200 index edged higher by 1.2% to reach 8,880.20, with traders awaiting an important interest rate decision from the country's central bank.
On the previous day, U.S. stock prices saw an increase, highlighted by a rise in the S&P 500, which gained 0.5% to close at 6,976.44, breaking a three-day losing streak. The Dow Jones Industrial Average rose 1.1% to 49,407.66, and the Nasdaq composite increased by 0.6% to finish at 23,592.11. Among individual stocks, Sandisk made headlines by jumping 15.4% after reporting higher-than-expected quarterly profits, attributed in part to demand driven by the AI boom. In contrast, Nvidia shares fell by 2.9%, as the company’s chips are pivotal to the burgeoning AI sector.
The Walt Disney Co. faced a notable decline, with shares down 7.4% despite reporting better-than-expected quarterly profits; the company cited challenges such as a decrease in international visitors to its U.S. theme parks. Conversely, shares of Palantir Technologies soared 7% in after-hours trading, following a report that revealed a 70% increase in revenue for the last quarter.
In the precious metals market, gold prices surged by 3.4% on Tuesday, while silver rebounded sharply with a 7.5% increase. The prices of these metals have been fluctuating significantly, rising dramatically as investors seek safe-haven assets amid uncertainty regarding the Federal Reserve’s policies. The trend has been exacerbated by the global economic situation, which includes concerns about tariffs and substantial government debt levels.
Gold's price has nearly doubled within the past year, reflecting its status as a preferred asset during tumultuous economic periods. However, the previous Friday saw a notable price drop, including a dramatic 31.4% plunge in silver prices, attributed to market reactions following President Trump's nomination of Kevin Warsh as the next Fed chair. The Federal Reserve’s chair plays a crucial role in shaping economic and market expectations through interest rate policies, influencing a wide array of investments.
Additionally, in early trading on Tuesday, benchmark U.S. crude oil prices decreased slightly, with a drop of 14 cents to $62.00 per barrel, and Brent crude fell by 22 cents to $66.08 per barrel. The U.S. dollar also saw a decline against the Japanese yen, trading at 155.42 yen, compared to 155.61 yen previously. The euro appreciated slightly, costing $1.1812, up from $1.1791.
