Asian Markets Climb as U.S. Stocks Gain Amid Corporate Earnings and Trade Tensions

BY COMFORT OGBONNA

Asian stock markets were mostly higher on Tuesday, following modest gains in U.S. indexes, as investors reacted to strong quarterly profits from several major companies. In Tokyo, the Nikkei 225 advanced 0.9%, closing at 53,333.54, while South Korea’s Kospi surged 2.7% to 5,084.85, despite rising tensions with Washington over trade.

U.S. President Donald Trump announced plans to raise tariffs on South Korean goods after the country’s national assembly had not yet approved a trade framework unveiled last year. In response, South Korea’s presidential office signaled its commitment to implementing last year’s deal and outlined plans for top officials to meet with U.S. counterparts. Industry Minister Kim Jung-Kwan is scheduled to travel to the United States to meet Secretary of Commerce Howard Lutnick, while Trade Minister Yeo Han-koo will separately meet with Trade Representative Jamieson Greer. Kim is currently visiting Canada.

Trump indicated that import taxes on South Korean autos, lumber, and pharmaceuticals would rise, while tariffs on other goods could jump from 15% to 25%. Nevertheless, strong gains in tech-related stocks helped offset losses in the automotive sector. Samsung Electronics climbed 4.9%, and chipmaker SK Hynix soared 8.7%. In contrast, automakers faced declines, with Kia Corp. falling 1.1% and Hyundai Motor Co. losing 0.8%.

China’s markets showed a mixed performance. Hong Kong’s Hang Seng rose 1.3% to 27,106.83, and the Shanghai Composite added 0.2% to 4,139.90, but Shenzhen’s benchmark slipped 0.1%. Taiwan’s Taiex increased 0.8%, while India’s Sensex edged up 0.1%.

U.S. stock futures showed mixed signals early Tuesday. The S&P 500 futures rose 0.3%, while Dow Jones Industrial Average futures slipped 0.1%. On Monday, the S&P 500 had recovered from last week’s losses, climbing 0.5% to 6,950.23. The Dow rose 0.6% to 49,412.40, and the Nasdaq composite gained 0.4% to 23,601.36.

Markets face a potentially volatile week ahead. The Federal Reserve is scheduled to announce its interest rate decision on Wednesday, with expectations that rates will remain steady. The central bank has been gradually lowering its main rate and suggested that additional cuts in 2026 could support the job market and stimulate the economy. Inflation remains above the Fed’s 2% target, however, raising concerns that lower rates could further intensify price pressures.

Investors are also awaiting earnings reports from major U.S. companies, including Meta Platforms, Microsoft, and Tesla on Wednesday, followed by Apple on Thursday. Strong corporate results on Monday helped lift Wall Street. Baker Hughes gained 4.4% after reporting higher-than-expected quarterly profits, driven in part by robust demand for liquefied natural gas. CoreWeave jumped 5.7% after Nvidia committed $2 billion to help expand the company’s AI-focused infrastructure through 2030, although Nvidia itself slipped 0.6%. USA Rare Earth surged 7.9% after announcing $277 million in U.S. government funding to support domestic production of heavy rare earths and magnets, alongside a proposed $1.3 billion loan and $1.5 billion in private investment.

Most other sectors remained relatively quiet. Airlines were mixed following a severe winter storm that caused thousands of flight cancellations across the United States. Delta Air Lines dropped 0.7%, while Southwest Airlines added 0.2%.

Precious metals continued to draw investor attention as a safe haven amid ongoing geopolitical and economic uncertainty. Gold rose 0.2% to $5,089.70 per ounce after surging 2.1% on Monday, briefly topping $5,100 per ounce. Silver declined 2.6% amid mixed investor sentiment.

Currency markets showed slight fluctuations. The dollar strengthened to 154.56 Japanese yen from 154.20 yen, while the euro slipped slightly to $1.1873 from $1.1881. Meanwhile, U.S. benchmark crude oil fell 25 cents to $60.38 per barrel, with Brent crude slipping 30 cents to $64.47 per barrel, as energy markets absorbed mixed signals from global supply and demand trends.

Overall, markets in Asia and the United States are navigating a complex mix of corporate earnings, trade tensions, and central bank policy, with investors closely watching economic data, policy decisions, and geopolitical developments for cues on the next moves in global financial markets.