Asian markets rose Tuesday following gains on Wall Street, with tech firms pushing Seoul to another record as investors largely brushed off U.S. President Donald Trump’s renewed threat to raise tariffs on South Korean goods. The yen held its gains after a two-day surge driven by intervention talk, while geopolitical and economic uncertainty lifted silver to a fresh peak and kept gold near its own record high, reports AFP.
Traders are also bracing for a Federal Reserve policy meeting and key earnings from tech giants, which will be closely watched for clues about whether the AI investment boom can sustain itself. Equities enjoyed broad buying despite Trump’s warning that he would impose 25 percent tariffs on South Korean products, including autos, for failing to meet expectations under a previous agreement with Washington. The announcement came months after both sides struck a trade and security deal that set levies at 15 percent.
Trump wrote on his Truth Social platform that South Korea’s legislature had not enacted the deal, and he would increase tariffs accordingly. Seoul’s presidential office said it had not been informed in advance, but confirmed Trade Minister Kim Jung-kwan would travel to Washington for talks with U.S. Commerce Secretary Howard Lutnick.
Trump’s tariff threats followed a similar warning to Canada over potential trade ties with China, and came days after he backed down from a plan to hit several European countries over their opposition to his Greenland plans. Still, Seoul’s Kospi continued its rally to new highs, with investors pointing to Trump’s track record of softening the worst of his threats. While automakers dipped, tech stocks surged, with chipmaker SK hynix rising more than five percent and Samsung Electronics up around two percent. Major gains were also seen in Hong Kong, Shanghai, Sydney, Singapore, Taipei, Manila and Jakarta.
Tech firms received a fresh boost ahead of earnings releases, as investors kept piling into AI-related names. The so-called Magnificent Seven—Apple, Microsoft, Meta and Tesla—are due to report this week, alongside bellwethers such as Texas Instruments, Boeing and Mastercard. However, traders are increasingly wary of when AI spending will translate into profits. Matt Weller, head of market research at City Index, warned that the AI capex cycle is colliding with debt markets, power grids and regulation, and that investors are shifting focus from “who spends the most” to “who can sustain spending without eroding free cash flow.”
Developments in Washington also drew attention, as some senators signaled opposition to upcoming spending bills following the second killing of a U.S. citizen in Minneapolis, raising the prospect of another government shutdown. The dollar remained under pressure after its recent selloff amid speculation of a joint intervention by U.S. and Japanese authorities to support the yen.
In corporate news, Hong Kong-listed shares of China’s Zijin Gold International rose more than one percent after the company agreed to buy Allied Gold, which owns African mines, for $4 billion. Its parent, Zijin Mining Group, surged over six percent, and Zijin Gold’s shares have tripled since listing in September.
At around 0230 GMT, the Nikkei 225 was up 0.3 percent at 53,017.71, Hong Kong’s Hang Seng Index rose 1.3 percent to 27,123.67, and Shanghai’s Composite was up 0.1 percent at 4,137.56. The dollar traded at 154.26 yen, while the euro stood at $1.1877 and Brent crude at $65.23 a barrel.
Bd-pratidin English/ Jisan
