Asia-Pacific markets rose Tuesday with several benchmarks in the region soaring, tracking gains on Wall Street.
In Japan, the Nikkei 225 regained 2,065.45 points, or 3.9%, to a record high of 54,720.66.
In Hong Kong, the Hang Seng index surged 59.2 points, or 1.2%, to 26,775.57.
South Korea’s Kospi led gains in the region, jumping nearly 7% to close at 5,288.08, briefly triggering a temporarily halt, or sidecar, in purchase orders. Index heavyweights SK Hynix and Samsung Electronics rose more than 9% and 11%, respectively, after slumping on Monday.
While Monday’s sharp decline shook investors, some are looking at it as a technical correction following an unprecedented rally, said MS Hwang, research director at Counterpoint.
The Korea Exchange said the trigger occurred after KOSPI 200 futures climbed more than 5% for over one minute. On Monday, a sidecar was also activated on the sell side after the Kospi 200 futures dropped as much as 5%.
Australia’s central bank raised its policy rate by 25 basis points to 3.85% on Tuesday, marking the Reserve Bank of Australia’s first rate hike since November 2023 as inflation stays elevated.
The Reserve Bank of Australia’s move matched Reuters estimates and followed data showing inflation was at its highest level in six quarters.
Senior RBA officials have repeatedly pushed back against expectations of rate cuts. Earlier this year, Reserve Bank of Australia Deputy Gov. Andrew Hauser said the likelihood of near-term rate cuts was “probably very low,” citing persistently high inflation. The central bank has an inflation target of 2.5%.
Investors will continue monitoring gold and silver prices following recent volatility which saw silver prices plunge around 30% last Friday, marking the metal’s worst one-day performance since 1980. Gold also dropped almost 10%.
Spot gold was last up about 6% at $4,938.6 U.S. per ounce, while silver rose nearly 10% to $86.96 U.S. per ounce.
In other markets
The CSI 300 in Shanghai recovered 54.13 points, or 1.2%, to 4,660.11.
In Korea, the Kospi index recouped 338.41 points, or 6.8%, to 5,288.08.
In Taiwan, the Taiex restored 571.33 points, or 1.8%, to 32,195.36
In Singapore, the Straits Times Index strengthened 51.82 points, or 1.1%. to 4,944.09.
In Australia, the ASX hiked 78.45 points, or 0.9%, to 8,857.05.
In New Zealand, the NZX 50 nicked higher 9.06 points, or 0.1%, to 13,421.52.
