Asian markets experienced a significant upswing on Tuesday, with South Korea’s benchmark Kospi index soaring nearly 7% and Japan’s Nikkei 225 setting a new record with a 3.9% increase. Investors have been actively purchasing tech-related stocks, fueling this market exuberance.
The Nikkei 225 closed at 54,720.66, marking its highest-ever closing figure. Notably, shares in Disco Corp., a leading equipment manufacturer, rose by 7.1%, and testing equipment maker Advantest saw a gain of 7%. This bullish trend is partly attributed to expectations surrounding the upcoming parliamentary elections on February 8, where Prime Minister Sanae Takaichi’s Liberal Democratic Party is anticipated to regain a substantial majority, promising more business-friendly policies.
Similarly, South Korea’s Kospi index surged 6.7% to end at 5,280.92, also a record high. This surge comes amid a resurgence of investor confidence following concerns about a potential bubble in artificial intelligence. Samsung Electronics saw its shares jump by 11.2%, while chipmaker SK Hynix experienced an impressive increase of 9.2%.
In greater Asia, Hong Kong’s Hang Seng index increased by 0.3% reaching 26,844.51, while the Shanghai Composite rose by 1.3% to 4,066.48. Meanwhile, Australia’s S&P/ASX 200 gained 0.9%, closing at 8,857.10. The Australian central bank has also contributed to market movements by raising its benchmark policy rate for the first time in two years, citing higher-than-expected inflation.
On the previous day in the U.S., share prices rose, with the S&P 500 increasing by 0.5% to 6,976.44, ending a three-day losing streak. The Dow Jones Industrial Average climbed by 1.1% to 49,407.66, and the Nasdaq composite gained 0.6%, closing at 23,592.11. Sandisk led the S&P 500 with a remarkable 15.4% jump after reporting stronger-than-expected profits, partly driven by the growing demand from artificial intelligence advancements.
However, not all companies fared well. The Walt Disney Company saw a decline of 7.4% despite announcing a stronger quarterly profit; the company cited challenges, including a drop in international visitors at its U.S. theme parks. Meanwhile, shares in software firm Palantir Technologies soared 7% in after-hours trading after reporting a 70% revenue increase in the last quarter.
Precious metals experienced volatility as gold and silver prices rebounded after a dramatic decline. On Tuesday, gold prices surged by 5.4%, while silver prices jumped by 10.2%. The increase is linked to investor behavior seeking safer investments amid ongoing uncertainties regarding the Federal Reserve’s independence and economic policy directions.
Additionally, benchmark U.S. crude prices slightly fell, with crude dropping 34 cents to $61.80 a barrel, and Brent crude shedding the same amount to settle at $65.96. The U.S. dollar also experienced a dip, trading at 155.45 Japanese yen, down from 155.61, while the euro gained slightly, costing $1.1816 compared to $1.1791 previously.
