Asia Markets Rebound Sharply on Tech Rally, Eyes on Earnings and Trade Tensions
TOKYO (AP) — Asian stock markets roared back on Tuesday, shaking off recent jitters as a wave of buying in technology shares propelled major indices sharply higher. The rally was led by South Korea's Kospi, which surged 5%, and Japan's Nikkei 225, which jumped over 3%.
The rebound marks a significant shift in sentiment after Monday's sell-off, which was severe enough to trigger brief automatic trading halts in Seoul. Analysts suggest investors are cautiously returning, using the dip to buy into sectors seen as long-term growth drivers, despite lingering macro concerns.
"This isn't just a dead-cat bounce," said Michael Chen, a portfolio manager at Horizon Capital in Singapore. "There's genuine conviction behind the tech move today, especially in semiconductors. The narrative around AI demand remains powerful, even if valuations gave everyone a scare."
In Tokyo, the Nikkei 225 climbed 3.2% to close at 54,346.33. Key tech components like equipment maker Disco Corp. and testing firm Advantest saw gains exceeding 5%. The Seoul market's dramatic 5% rebound to 5,197.86 was fueled by giants Samsung Electronics and SK Hynix, which soared 6.9% and 7.5% respectively.
Other regional markets were more subdued. Hong Kong's Hang Seng was nearly flat, while the Shanghai Composite added a modest 0.4%. Australia's S&P/ASX 200 rose 1.2% ahead of a central bank rate decision.
Investors are now bracing for a flurry of corporate earnings reports, which will serve as a crucial reality check. The results are expected to reveal the tangible impact of several overlapping trends: the ongoing U.S.-China trade tensions, potential disruptions to rare earths supply chains, and the real-world profitability of the artificial intelligence boom.
The positive Asian session followed a resilient performance on Wall Street. The S&P 500 snapped a three-day losing streak, gaining 0.5%. Notably, data-storage company Sandisk leaped over 15%, citing AI-driven demand, even as AI chip leader Nvidia dipped 2.9%.
Beyond equities, volatility continued in the commodities space. After a brutal sell-off on Friday that saw silver plunge over 30%, precious metals staged a partial recovery on Tuesday. Gold rose 3.4% and silver rebounded 7.5%. The wild swings reflect deep-seated investor anxiety over Federal Reserve policy, lofty stock valuations, and global debt levels.
In energy trading, benchmark U.S. crude oil prices edged lower. The U.S. dollar weakened slightly against the Japanese yen and the euro.
Market Voices: A Split on Sustainability
David Park, Chief Strategist, Ascent Wealth Management (Seoul): "The fundamentals for the tech sector, particularly in memory and AI infrastructure, remain robust. Monday was an emotional overreaction. Today's bounce shows institutional money is looking through the short-term noise. The key will be whether earnings guidance confirms this strength."
Lisa Monroe, Independent Trader (Hong Kong): "This feels like a classic suckers' rally. We're piling back into the same overvalued tech names while ignoring the massive structural risks—Trump's tariffs, a potential Fed shake-up, and a Chinese rare earths squeeze. One good day doesn't fix that. I'm using this strength to hedge."
Kenji Tanaka, Senior Economist, Mizuno Research Institute (Tokyo): "The market is in a delicate balancing act. Positive micro factors like strong tech earnings are battling macro geopolitical uncertainties. The rebound is welcome, but volatility will remain elevated until we get clarity on trade policy and central bank leadership."
Sarah Wilkinson, Retail Investor (Sydney): "It's exhausting. One day everything's crashing because of AI bubbles and Fed fears, the next it's a huge rally. As a long-term investor, I'm trying not to watch the daily drama, but it's impossible to ignore. I just hope the companies I own deliver solid results."
AP Business Writer Stan Choe contributed to this report.
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama