Asian stock markets closed mostly higher on Tuesday, reflecting a positive sentiment following recent gains in US stock indexes. Strong corporate earnings reports contributed to this upward movement, with the Nikkei 225 in Japan gaining 0.9 percent to close at 53,333.54.
In South Korea, the Kospi surged 2.7 percent, despite President Donald Trump‘s announcement of impending tariff increases on South Korean goods. The presidential office in South Korea responded promptly, emphasizing their commitment to the trade framework established the previous year. Industry Minister Kim Jung-Kwan is scheduled to visit the US for discussions with Secretary of Commerce Howard Lutnick, while Trade Minister Yeo Han-koo will meet with Trade Representative Jamieson Greer.
The announcement by Trump includes raising import taxes on various sectors, including automobiles and pharmaceuticals, with rates increasing from 15 percent to 25 percent on some goods. Despite this, gains in South Korean technology stocks helped mitigate potential losses in the automotive sector. For instance, Samsung Electronics saw a rise of 4.9 percent, while chipmaker SK Hynix soared by 8.7 percent. Conversely, automakers struggled, with Kia and Hyundai Motor Co. down by 1.1 percent and 0.8 percent, respectively.
Chinese markets showed mixed results. The Hang Seng in Hong Kong advanced by 1.3 percent, closing at 27,106.83, while the Shanghai Composite index gained 0.2 percent to 4,139.90. However, the Shenzhen benchmark fell by 0.1 percent. In Taiwan, the Taiex rose 0.8 percent, and India’s Sensex edged up by 0.1 percent.
Turning to the US markets, futures for the S&P 500 gained 0.3 percent, while those for the Dow Jones Industrial Average were slightly lower, down 0.1 percent. On Monday, the S&P 500 rose 0.5 percent to close at 6,950.23, with the Dow Jones increasing 0.6 percent to 49,412.40 and the Nasdaq composite gaining 0.4 percent to 23,601.36.
Investors are bracing for potential volatility this week as several critical events unfold. The Federal Reserve is set to announce its interest rate policy on Wednesday, with expectations leaning towards maintaining the current rate. The Fed has been proactive in lowering rates, aiming to bolster the job market and stimulate economic growth, even as inflation remains stubbornly above its 2 percent target.
Key earnings reports from major companies, including Meta Platforms, Microsoft, and Tesla, are also anticipated, along with Apple‘s report on Thursday. The market’s reaction to these results could further influence overall trends.
In the commodities market, gold prices resumed their climb, rising 0.2 percent to $5,089.70 per ounce. After a 2.1 percent rally on Monday, gold had briefly surpassed $5,100 for the first time. Silver, however, lost 2.6 percent. Heightened demand for precious metals reflects concerns over tariffs, persistent inflation, and global political instability.
Currency markets saw the US dollar rise to 154.56 Japanese yen from 154.20 yen, while the euro slipped to $1.1873 from $1.1881. In energy markets, US benchmark crude oil fell 25 cents to $60.38 per barrel, and Brent crude decreased 30 cents to $64.47 per barrel.
As the week progresses, market participants will continue to monitor these developments closely, weighing their potential impact on both Asian and global markets.
