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Asian stocks reach record highs as earnings expectations offset Trump's Korea Tariff move

Asian shares reached a record high on Tuesday, as investors hoped that the U.S. earnings of large-cap companies would be positive. However, uncertainty over President Donald Trump's tariff moves against South Korea has boosted gold and Silver.

Trump said late Monday that he will increase tariffs to 25% on imports of goods from Asia's 4th largest economy.

The Nasdaq Futures rose 0.5% as investors prepared for the slew earnings that will be released by Microsoft, Apple, and Tesla on Wednesday.

Even South Korea's KOSPI surged by over 2% and reached a new high. The EURO STOXX futures are pointing to a positive opening for European stocks.

Jose Torres is a senior economist at Interactive Brokers. He said: "Investors are increasing their exposure to technology shares before four of the Magnificent Seven report results."

Torres said that a visit by South Korean Industry Minister Kim Jung Kwan to Washington this Friday would "ease tensions and give the government more time to improve its relations."

Silver gained 4%, to $108 per ounce. This is not far off the record high of $117.70 set on Monday.

Christopher Louney is a commodity analyst at RBC Capital Markets.

Louney said that history suggests the current gold rally may last until early September or late December this year. He added that the price of an ounce could reach $7,100 at the end the year, based on 2025's performance.

In Asia, MSCI’s broadest Asia-Pacific share index outside Japan rose by 0.9% and reached a new high. The Nikkei rose 0.7% despite the sharp yen rebound that has clouded the outlook of Japan's huge export sector.

The Hang Seng Index in Hong Kong rose 1%, while the blue chips of China gained 0.2%.

U.S. DOLLAR MALIS

Investors are rethinking their optimistic expectations for the greenback's stability in 2026.

The New York Fed's rate check chatter fueled fears of a U.S./Japan joint intervention to stop the yen’s decline.

The dollar gained 0.2% on Tuesday to 154.55 Japanese yen, after losing 2.6% in the previous two sessions. This was below the 160 yen mark that the Japanese authorities consider a red line.

The greenback's value against six major currencies was flat at 97.12 - close to a 4-1/2-month low of 96.8.

The benchmark 10-year yield in the Treasuries Market increased by 2 basis points, to 4.2292%. It had fallen for four consecutive sessions from a recent high of 4.313%.

In the background, Republicans and Democrats are at odds over funding Trump's Department of Homeland Security following the fatal shooting of another U.S. Citizen by federal immigration officers.

Investors watched closely the resumption of supply from Kazakhstan, which caused oil prices to fall on Tuesday. Brent crude futures fell 0.7% to $65.13 per barrel while U.S. West Texas Intermediate oil dropped 0.6% to 60.25. (Reporting and editing by Shri Navaratnam, Thomas Derpinghaus, and Stella Qiu)

(source: Reuters)