BY COMFORT OGBONNA
Asian stocks pushed broadly higher on Tuesday, lifted by a powerful surge in Japan following another round of record-setting gains on Wall Street. Despite U.S. futures easing slightly and oil prices inching upward, enthusiasm across Asian trading floors remained firm.
Japan’s Nikkei 225 roared back from a market holiday to jump 3.1%, soaring to an unprecedented intraday high of 53,814.79. A wave of strength from technology-linked companies drove the momentum. Advantest, a major player in computer chip testing equipment, rallied 8.5%, while leading semiconductor manufacturer Tokyo Electron surged 8.3%. Heavyweight SoftBank Group also enjoyed a strong session, climbing 4.3%.
The ongoing political backdrop added intrigue, as investors evaluated the likelihood of a snap election. Growing speculation suggests Prime Minister Sanae Takaichi may call for an early vote to secure support for policies favoring greater government spending and economic stimulus.
Hong Kong joined the regional upswing, with the Hang Seng advancing 1% to 26,877.01. Trading excitement was particularly concentrated around chip designer GigaDevice Semiconductor, whose high-profile market debut sent shares rocketing 54% in early trade. Meanwhile, mainland China found little direction, with the Shanghai Composite edging down slightly by less than 0.1% to 4,163.84.
South Korea’s Kospi continued its winning streak, rising 0.6% to reach fresh intraday highs. Elsewhere, Australia’s S&P/ASX 200 added 0.8% to 8,830.60, Taiwan’s Taiex gained 0.5%, while India’s Sensex slipped 0.3% as investors locked in profits after recent gains.
The rally across Asia followed another milestone session on Wall Street. Investors weighed potential challenges to the U.S. Federal Reserve’s policy independence, but those concerns were largely overshadowed by optimism that President Donald Trump could successfully pressure the Fed to accelerate interest rate cuts. Lower rates typically spark borrowing and investment, helping lift stock valuations.
Tensions escalated after the Department of Justice subpoenaed the Federal Reserve and suggested possible criminal charges related to Fed Chair Jerome Powell’s testimony regarding construction at the central bank’s headquarters. Still, market sentiment leaned bullish.
The S&P 500 added nearly 0.2% Monday, closing at a fresh record of 6,977.27. The Dow Jones Industrial Average also climbed 0.2% to an all-time peak of 49,590.20, while the Nasdaq advanced 0.3% to 23,733.90.
Trump has continued to call for deeper rate cuts, despite the Fed lowering borrowing costs three times in 2025. The White House clarified that he did not personally instruct the Justice Department to scrutinize Powell or the central bank.
Tech titan Alphabet rose 1%, lifting its market capitalization beyond the $4 trillion mark. The gain followed Apple’s announcement of a deal to integrate Google’s Gemini AI into Siri, signaling a new era of competition in digital assistants.
Credit card companies, however, struggled. Trump’s proposal for a one-year 10% ceiling on credit card interest rates weighed heavily on lenders. Synchrony Financial tumbled 8.4%, Capital One fell 6.4%, and American Express slipped 4.3%.
Commodity and currency movements were more subdued. Gold dipped 0.2% while silver added 0.8%. The U.S. dollar strengthened against the yen, rising to 158.72 from 158.07, hovering near yearly highs. The euro eased marginally to $1.1666 from $1.1667.
Global trading floors now watch for signals from central bankers and political leaders alike, as markets continue to balance policy uncertainty against strong momentum and investor optimism.
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