Most Asian stocks rose on Tuesday, following a rally on Wall Street after U.S. President Donald Trump softened his rhetoric toward China. Earlier, Trump had threatened 100 percent tariffs on Chinese goods, stoking fears of a renewed trade war. His more conciliatory tone eased those concerns, helping stocks surge: the Nasdaq jumped more than two percent, while the S&P 500 and Dow each gained over one percent on Monday.
In Asia, markets in Hong Kong, Shanghai, Singapore, Seoul, Sydney, Taipei and Manila posted gains, although Wellington and Jakarta slipped. Tokyo, however, lagged because of political turmoil in Japan. The ruling coalition collapsed on Friday when junior partner Komeito quit, casting doubt on whether Sanae Takaichi, the new leader of the ruling party, can become the country’s first female prime minister.
Despite the political uncertainty, demand for technology firms remains strong, driven by recent partnerships and AI‑related investments. Broadcom’s agreement with OpenAI to supply 10 gigawatts of computing power exemplifies this trend, as do similar moves by Nvidia, AMD, Oracle, Samsung and SK Hynix in AI and data centers.
Commodity markets also saw activity: silver hit a record $52.90, and gold continued to set new highs, reaching nearly $4,150. Safe‑haven demand is being fueled by expectations of further U.S. interest‑rate cuts, worries about rising debt, and warnings that the AI‑driven global rally may be overstretched.
The U.S.–China trade war remains a major concern for investors, with China vowing to “fight to the end.” Markets are watching developments closely. At 02:30 GMT, Tokyo’s Nikkei 225 was down 1.2 percent, while Hong Kong’s Hang Seng Index and Shanghai’s Composite rose 0.3 percent and 0.5 percent, respectively. The euro and pound both gained against the dollar, and West Texas Intermediate and Brent crude each rose 0.4 percent.
The recovery in Asian stocks marks a notable reversal after the tariff‑related losses. As investors monitor the evolving U.S.–China trade dispute, the next steps in the conflict will be crucial for market direction. With the global economy facing challenges such as rising debt and AI‑driven volatility, investors are seeking safe‑haven assets and looking for signs of stability in the trade war.
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