BY COMFORT OGBONNA
Asian shares surged sharply on Tuesday, driven by strong gains in technology-related stocks, as investors grew more optimistic ahead of major corporate earnings reports and shrugged off recent volatility in global markets. South Korea and Japan led the advance, with both markets closing at record levels amid renewed confidence in the outlook for the semiconductor and artificial intelligence sectors.
Japan’s benchmark Nikkei 225 jumped 3.9% to close at 54,720.66, marking its highest finish on record. Technology and chip-related stocks powered the rally, with equipment maker Disco Corp. climbing 7.1% and testing equipment producer Advantest rising 7%. Investor sentiment was also supported by expectations that Prime Minister Sanae Takaichi’s Liberal Democratic Party will regain a strong parliamentary majority in the February 8 election, a result widely seen as paving the way for more market-friendly economic policies and regulatory stability.
In South Korea, the Kospi surged 6.7% to 5,280.92, also setting a new record. The sharp rally came as investors regained confidence following recent concerns about a potential bubble in artificial intelligence-related stocks. Heavyweight technology shares led the rebound, with Samsung Electronics Co. soaring 11.2% and chipmaker SK Hynix jumping 9.2%, reflecting optimism about sustained global demand for semiconductors.
Elsewhere in the region, gains were more modest but still broadly positive. Hong Kong’s Hang Seng Index added 0.3% to 26,844.51, while mainland China’s Shanghai Composite rose 1.3% to 4,066.48, supported by buying in large-cap and technology shares. In Australia, the S&P/ASX 200 advanced 0.9% to 8,857.10 after the country’s central bank raised its benchmark policy rate for the first time in two years, citing inflation that proved higher than expected before its previous rate cut.
Investors across Asia are closely watching upcoming earnings reports from major global companies, seeking clues on how U.S. President Donald Trump’s tariffs and the possibility of tighter controls on rare earth exports from China could affect corporate profits and global supply chains.
Overnight on Wall Street, U.S. stocks posted solid gains, while precious metals retreated following their recent dramatic swings. The S&P 500 rose 0.5% to 6,976.44, snapping a three-day losing streak. The Dow Jones Industrial Average climbed 1.1% to 49,407.66, and the Nasdaq composite added 0.6% to 23,592.11.
Sandisk was the standout performer, jumping 15.4% to lead gains on the S&P 500. The data-storage company extended a rally from the previous session after reporting quarterly profits that exceeded expectations, citing strong demand linked to the artificial intelligence boom. Those gains helped offset a 2.9% decline in Nvidia, whose chips underpin much of the global expansion in AI technology.
Not all companies shared in the optimism. Shares of The Walt Disney Co. fell 7.4% despite reporting stronger-than-expected quarterly profits, after the company warned of challenges including a decline in international visitors to its U.S. theme parks. Meanwhile, software firm Palantir Technologies surged 7% in after-hours trading after reporting that its revenue jumped 70% in the most recent quarter.
Precious metals remained a focal point for investors as prices swung sharply following exceptional gains over the past year. Gold prices have roughly doubled over the last 12 months, reflecting strong demand for perceived safe-haven assets. On Tuesday, gold rebounded with a 5.4% gain, while silver surged 10.2% after suffering heavy losses late last week.
Gold and silver have benefited from investor unease surrounding uncertainty over the future independence of the Federal Reserve, concerns that U.S. equities are richly valued, the threat of new tariffs, and rising government debt levels worldwide. Prices tumbled sharply on Friday, including a steep 31.4% plunge in silver, a move some market participants linked to President Trump’s nomination of Kevin Warsh as the next chair of the Federal Reserve.
The leadership of the Federal Reserve plays a critical role in shaping global financial conditions by influencing U.S. interest rate policy, which in turn affects currencies, stocks, bonds, and commodities worldwide as the central bank seeks to balance economic growth with inflation control.
In early commodity trading on Tuesday, benchmark U.S. crude oil slipped 34 cents to $61.80 per barrel, while Brent crude also fell 34 cents to $65.96 per barrel. In currency markets, the U.S. dollar weakened slightly to 155.45 Japanese yen from 155.61 yen, while the euro edged higher to $1.1816 from $1.1791.
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