Bombay Gate Mumbai, the gateway to India
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Asia-Pacific markets rose on Tuesday, with several indexes in the region surging following Wall Street’s gains.
South Korea’s Kospi led the region’s gains, surging nearly 7% to close at 5,288.08, triggering a temporary suspension of buy orders, or sidecars. The index’s leading stocks, SK Hynix and Samsung Electronics, rose more than 9% and 11%, respectively, after falling on Monday.
MS Huang, research director at Counterpoint, said Monday’s selloff shocked investors, but some saw it as a technical correction following an unprecedented rally.
“Despite the volatility, the ‘long-term’ case for South Korea appears to remain intact, because, after all, the structural bullish case is now centered around the memory cycle,” he said.
According to the Korea Exchange, the trigger occurred after KOSPI200 futures rose more than 5% for more than a minute. On Monday, sidecars were also triggered on the sell side after Kospi 200 futures fell as much as 5%.
The small-cap Kosdaq rose 4.19% to close at 1,144.33.
indian nifty 50 The index rose nearly 5% after US President Donald Trump said Washington and New Delhi would strike a trade deal and immediately begin cutting tariffs on each other’s goods.
Trump added that Indian Prime Minister Narendra Modi had agreed to step up purchases of American products, according to a post on Truth Social on Monday after the two leaders spoke on the phone.
Under the deal, India would stop buying Russian crude oil and instead buy more from the United States and potentially Venezuela, Trump added.
Nifty 50 rose 2.73% and BSE Sensex rose 2.66%.
Japanese Nikkei Stock Average rose more than 3.92% to close at a record high of 54,720.66, while TOPIX rose 3.1% to close at 3,645.84.
Hong Kong’s Hang Seng Index rose 0.22% to 26,834.77, while the mainland’s CSI300 index rose 1.18% to end at 4,660.11.
Australia’s S&P/ASX 200 index rose 0.89% to 8,857.1. Australia’s central bank on Tuesday raised its policy rate by 25 basis points to 3.85% as inflation remains high, the Reserve Bank of Australia’s first rate hike since November 2023.
The Reserve Bank of Australia’s move was in line with Reuters forecasts and followed data showing inflation at its highest level in six quarters.
RBA officials have repeatedly pushed back against expectations for rate cuts. Earlier this year, Reserve Bank of Australia Deputy Governor Andrew Hauser said the chances of a short-term interest rate cut were “probably very low” due to continued high inflation. The central bank has set an inflation target of 2.5%.
Investors will continue to monitor gold and silver prices following recent volatility that saw silver prices drop by around 30% last Friday, marking its worst single-day performance since 1980. Gold also fell by nearly 10%.
Spot gold was last up about 6% at $4,938.6 an ounce, while silver was up nearly 10% at $86.96 an ounce.
U.S. stocks rose overnight as Wall Street opened for a new month, with investors overlooking recent declines in silver and Bitcoin.
The Dow Jones Industrial Average rose 1.05% to close at 49,407.66, while the S&P 500 rose 0.54% to settle at 6,976.44. The Nasdaq Composite Index also rose 0.56% to end at 23,592.11.
—CNBC’s Lim Hui Jie, Sean Conlon and Fred Imbert contributed to this report.
