Asian shares moved higher on Tuesday as investors positioned for a wave of U.S. mega-cap earnings, even as fresh tariff tensions from President Donald Trump added a layer of uncertainty to global markets. Optimism around upcoming results from major U.S. technology companies helped offset concerns about escalating trade friction with South Korea, boosting risk sentiment across much of the Asia-Pacific region.
Markets reacted calmly after Trump announced plans to raise tariffs to 25% on key South Korean imports such as automobiles, lumber, and pharmaceuticals, accusing Seoul of failing to fully comply with its trade agreement with Washington. South Korea’s KOSPI index initially slipped but quickly rebounded, ending up around 0.8%, signaling investor resilience despite geopolitical risks.
Broader regional markets followed suit, with MSCI’s Asia-Pacific index excluding Japan gaining 0.4%. Hong Kong’s Hang Seng index rose 0.4%, while Chinese blue-chip stocks were largely unchanged. Japan’s Nikkei edged down slightly, weighed by a stronger yen that has clouded prospects for exporters.
In the U.S., Nasdaq futures climbed 0.2% as investors awaited earnings from members of the “Magnificent Seven,” including Apple, Microsoft, and Tesla. Wall Street extended its rally overnight, with the S&P 500 and Nasdaq reaching their highest levels in more than a week, underscoring confidence in the AI-driven growth narrative.
Safe-haven assets surged amid ongoing uncertainty. Gold prices jumped 1% to around $5,066 an ounce, nearing record highs, while silver soared more than 6% to above $110 an ounce. Analysts attributed the rally to heightened market volatility and a weakening U.S. dollar, with some forecasting further upside for precious metals.
The U.S. dollar remained under pressure, hovering near multi-month lows against major currencies, particularly the Japanese yen. Treasury yields stabilized after recent declines, while oil prices were mostly flat. With the Federal Reserve decision and political developments in focus, global markets remain sensitive to policy signals, currency movements, and earnings momentum.


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