Asian markets climbed on Tuesday, led by a 3.3% surge in Japan’s Nikkei to record highs, as investor enthusiasm around artificial intelligence and a weaker yen boosted risk appetite. South Korean and Taiwanese equities also hit all-time peaks, while Chinese blue chips rose to a four-year high.
Geopolitical tension kept commodities in focus. Oil prices advanced on fears of supply disruptions from Iran after U.S. President Donald Trump warned of 25% tariffs on countries trading with Tehran. Brent crude rose to $64.11 a barrel, while U.S. crude climbed to $59.75.
Gold outperformed, breaking above $4,600 an ounce for the first time as uncertainty over Federal Reserve independence pressured the dollar and lifted demand for safe havens. The dollar index hovered near 98.94, while the yen slid to historic lows, prompting concern from Japanese officials.
Looking ahead, investors are bracing for U.S. inflation data and the start of bank earnings season, with markets balancing strong AI-driven growth expectations against rising political and monetary risks.
Frequently Asked Questions
Why did Asian markets rise sharply?
Asian shares climbed on strong AI-related optimism, a weaker yen boosting Japanese exporters, and expectations of supportive fiscal policies in Japan.
What pushed Japan’s Nikkei to record highs?
The Nikkei jumped as the yen hit historic lows, improving export competitiveness, while hopes of fiscal stimulus and political stability lifted investor confidence.
Why is gold rising despite higher risk appetite?
Gold gained as uncertainty over U.S. Federal Reserve independence weakened the dollar, increasing demand for gold as a safe-haven asset.
How are geopolitical tensions affecting oil prices?
Unrest in Iran and the threat of U.S. tariffs raised concerns about supply disruptions, pushing oil prices to seven-week highs.
What are investors watching next?
Markets are focused on U.S. inflation data, bank earnings, and signals on interest rates that could shape global asset performance in 2026.
