Asia-Pacific markets jumped on Tuesday as investor optimism returned, fueled by a fresh U.S.-India trade deal and strong Wall Street performance. Japan’s Nikkei 225 soared 3.92% to close at a record 54,720.66, while the broader Topix index climbed 3.1%, marking a major rebound after recent market volatility. Analysts noted that the rally reflects renewed confidence in global trade and corporate earnings.
South Korea’s Kospi led regional gains, jumping nearly 7% to 5,288.08, temporarily triggering a “sidecar” halt on trading due to rapid buying. Heavyweights SK Hynix and Samsung Electronics surged more than 9% and 11% respectively, bouncing back from Monday’s sharp declines. Experts say the recovery is part of a technical correction after an extended rally, particularly in the memory chip sector that continues to drive Korea’s stock market.
India’s markets also responded positively to the U.S.-India trade announcement. President Donald Trump said that Prime Minister Narendra Modi agreed to increase purchases of U.S. products and cut tariffs, while India plans to reduce its reliance on Russian crude oil. The Nifty 50 rose 2.73%, and the BSE Sensex gained 2.66%, highlighting investor optimism over strengthened trade ties.
Meanwhile, Australia’s S&P/ASX 200 climbed 0.89% to 8,857.1 as the Reserve Bank of Australia raised its policy rate by 25 basis points to 3.85%, signaling a cautious approach amid rising inflation. Hong Kong’s Hang Seng and China’s CSI 300 also advanced modestly, reflecting a broader regional rebound. Investors remain watchful of commodities, with gold and silver rebounding sharply after last week’s historic drops.
Overnight, U.S. markets added to the positive momentum. The Dow Jones Industrial Average rose 1.05% to 49,407.66, while the S&P 500 and Nasdaq gained 0.54% and 0.56%, respectively. Market watchers say the regional surge is fueled by a combination of trade optimism, technical rebounds, and stabilization in previously volatile assets, offering a glimmer of relief for investors navigating a turbulent start to the year.
source: cnbc