HONG KONG, February 3, 2026, 15:22 (HKT)
- Japan’s Nikkei climbed roughly 4%, while South Korea’s KOSPI jumped about 5%, bouncing back from Monday’s sell-off.
- Australia’s central bank raised its cash rate by 25 basis points, pushing it to 3.85%—its first increase since November 2023.
- Indian stocks and the rupee surged following news of a U.S.-India tariff agreement; meanwhile, gold and silver steadied after steep declines.
Asian stocks bounced back Tuesday following last week’s sell-off in precious metals. Japan’s Nikkei surged 4%, while South Korea’s KOSPI gained 5%. Gold rallied roughly 3% to $4,820 an ounce, and silver jumped 5%, shaking off Monday’s dips.
The rebound follows a steep 5.6% dive in the KOSPI just a day earlier, which triggered a program-trading halt—a measure that stops some automated trades during sharp futures moves. Concerns over Kevin Warsh’s nomination to head the Federal Reserve added to the unease, compounded by Nvidia CEO Jensen Huang’s remarks that a planned $100 billion investment in OpenAI was “never a commitment.” Moneycontrol
Tuesday’s rally followed gains in Wall Street tech and chip shares overnight, as investors geared up for Amazon and Alphabet earnings. Samsung Electronics in South Korea soared almost 8%, while SK Hynix shot up 10%, bouncing back from the previous day’s losses.
Australia’s Reserve Bank increased its benchmark interest rate by 25 basis points, pushing it to 3.85%. Officials described the hike as a necessary step to tackle inflation pressures. (A basis point equals one-hundredth of a percentage point.)
India’s markets surged after Donald Trump revealed a deal to slash U.S. tariffs on Indian goods from 50% down to 18%, in exchange for New Delhi stopping Russian oil imports and easing trade restrictions, Reuters reported. The Nifty 50 climbed nearly 3%, while the rupee gained over 1% in early trading. Marcella Chow of J.P. Morgan Asset Management said the pact “should help enhance investor confidence” and back investment plans. Reuters
Gold and silver remain under intense pressure. Silver plunged 5.56% to $79.92 an ounce on Monday, after earlier dropping as low as $71.33. Gold fell 3.85% to $4,676.28, according to Reuters, as traders grappled with higher margin requirements imposed by CME Group. These increased cash collateral demands for futures can force leveraged traders to slash their positions. “Gold and silver are on a rollercoaster ride,” said John Meyer of SP Angel. Reuters
Silver’s rollercoaster ride has been intense. It surged to a record $121.6 on Jan. 29, then plummeted sharply. Analysts quoted by Reuters suggest a more sustainable range might be $60–$70. “There’s been a massive, massive retail frenzy,” said Ole Hansen, head of commodity strategy at Saxo Bank. Reuters
Downside risk remains a dark cloud over the markets: analysts caution that volatility could stick around, and it’s “far too early” to call a bottom in gold after its quickest selloff in decades. That said, some banks aren’t giving up on the metal just yet. UBS analyst Giovanni Staunovo expects gold to hit a fresh record above $6,200 later this year. Reuters
The slump in metals is hitting stocks. Pandora shares jumped up to 10% on Monday, Reuters reported, following a drop in silver prices. Janne Vincent Kjaer from Jyske Bank noted that the earlier silver spike had been “a key concern” for the market. Reuters
For long-term investors, nothing has shifted dramatically overnight. Reuters noted strong inflows into emerging market equity funds in January. Some managers highlighted semiconductor suppliers in South Korea and Taiwan as key plays on the AI boom beyond the U.S. Varun Laijawalla, a portfolio manager at Ninety One, said last year’s dollar movements “change the backdrop” for emerging markets. Reuters
