Asian shares climb as US markets gain
Asian shares experienced a mostly positive trend on Tuesday, following a rise in US stock indexes, which were supported by robust profit reports from several companies. The price of gold has retreated from its peak, declining by 0.2 percent to $5,071.70. Silver experienced a decline of 5.1 per cent, settling at $109.66 per ounce. In Tokyo, the Nikkei 225 experienced an increase of 0.6 per cent, reaching 53,188.39. The Kospi in South Korea surged 1.9 per cent to 5,042.32, despite US President Donald Trump’s announcement of plans to raise tariffs on South Korean goods, citing the delay in the national assembly’s approval of a trade framework revealed last year. On social media Monday, Trump announced that import taxes would increase on automobiles, lumber, and pharmaceutical drugs from South Korea, with the rate on other goods rising from 15 percent to 25 percent. Tech-related shares, such as Samsung Electronics, saw a rise of 2.9 per cent, which helped to counterbalance the losses experienced by automakers like Kia Corp., which declined by 2 per cent. Chinese markets displayed a varied performance. Hong Kong’s Hang Seng rose by 1.1 per cent, reaching 27,055.65, while the Shanghai Composite index remained nearly unchanged at 4,134.03. However, the benchmark for the smaller market in Shenzhen experienced a decline of 0.9 per cent. Taiwan’s Taiex experienced an increase of 0.8 per cent, whereas India’s Sensex saw a decline of 0.5 per cent. The future for the S&P 500 increased by 0.3 percent, whereas the Dow Jones Industrial Average saw a decline of 0.1 percent.
On Monday, the S&P 500 increased by 0.5 percent, recovering from the losses incurred during last week’s decline to finish at 6,950.23. The Dow Jones Industrial Average increased by 0.6 percent, reaching 49,412.40, while the Nasdaq composite rose by 0.4 percent to 23,601.36. Financial markets may experience increased volatility during a week filled with significant challenges. The Federal Reserve is set to announce its position on interest rates this Wednesday, with expectations leaning towards maintaining the current rate. The central bank has been reducing its primary interest rate and has signaled that further cuts could occur in 2026 to support the job market and stimulate economic growth. Inflation continues to persist above the Fed’s 2 percent target, and reducing rates could exacerbate the situation. Several of market’s most influential stocks are poised to release their earnings reports. On Wednesday, this includes Meta Platforms, Microsoft, and Tesla, followed by Apple on Thursday.
In Monday trading, Baker Hughes emerged as a leader, rising 4.4 percent after reporting a stronger profit for the latest quarter than analysts had anticipated, bolstered by robust demand for liquefied natural gas, among other factors. CoreWeave experienced a 5.7 per cent increase following Nvidia’s announcement of a $2 billion investment in the company. This funding will facilitate the expansion of CoreWeave’s artificial-intelligence factories, which utilize Nvidia chips, with the goal of advancing AI adoption by 2030. However, Nvidia experienced a decline of 0.6 percent. USA Rare Earth experienced a significant increase of 7.9 percent following the announcement that the US government has agreed to allocate $277 million in federal funding to assist the company in the production of heavy rare earths, minerals, and magnets. The Trump administration also consented to a proposed $1.3 billion loan, while the company independently secured $1.5 billion through private investors. Much of the remainder of US Market exhibited a notable calm. Airlines experienced varied performances, having to cancel thousands of flights as a result of the winter storm that affected a large portion of the United States over the weekend. Delta Air Lines experienced a decline of 0.7 per cent, while Southwest Airlines saw an increase of 0.2 per cent.
In other dealings early Tuesday, the price of gold experienced a decline of 0.3 per cent, settling at $5,067 per ounce. On Monday, it experienced a rally of 2.1 per cent and briefly surpassed $5,100 per ounce for the first time. Silver surged significantly, closing 14 per cent higher, now standing at approximately $109 per ounce. Prices for precious metals have surged as investors seek safer havens for their capital in the face of tariff threats, persistently high inflation, political turmoil, and significant government debt globally. The dollar increased to 154.52 Japanese yen, up from 154.20 yen, whereas the euro decreased to $1.1873, down from $1.1881. US benchmark crude oil declined by 35 cents, settling at $60.28 per barrel. Brent crude, the international benchmark, decreased by 43 cents to $64.34 per barrel.
