Global shares surge, led by records in Japan and South Korea, as markets regain momentum

The future for the S&P 500 was up 0.3% while that for the Dow Jones Industrial Average rose 0.1%.

Markets are awaiting earnings reports from major companies to gauge the impact of various trends including U.S. President Donald Trump’s tariffs and possible curbs on rare earths exports from China.

Japan's benchmark Nikkei 225 climbed 3.9% to finish at 54,720.66, its highest close ever. Shares in equipment maker Disco Corp. jumped 7.4% while those in testing equipment maker Advantest gained 7.1%.

Share prices have been boosted by expectations that Prime Minister Sanae Takaichi's Liberal Democratic Party will regain a significant majority in the parliament in a Feb. 8 election, ushering in more market-friendly policies. Some analysts warn the Japanese yen may weaken further if Takaichi boosts government spending, presenting hardships for consumers and some companies.

In South Korea, the Kospi gained 6.8% to 5,288.08, also a record. Investors appeared to regain confidence after the latest scare over a possible bubble in artificial intelligence as shares in Samsung Electronics Co. soared 11.4% while those in chip maker SK Hynix rocketed up 9.3%.

Hong Kong's Hang Seng gained 0.2% to 26,834.77, while the Shanghai Composite added 1.3% to 4,067.74.

Australia’s S&P/ASX 200 edged up 0.9% to 8,857.10. Australia’s central bank raised its benchmark policy rate for the first time in two years, citing higher inflation than anticipated before it last cut rates.

On Monday, the S&P 500 added 0.5%, snapping a three-day losing streak. The Dow industrials rose 1.1% and the Nasdaq composite gained 0.6%.

Gold gained 6.7% on Tuesday, while silver’s price rebounded nearly 14%.

Gold and silver prices have surged as investors search for safer things to own at a time of uncertainty over the status of the Federal Reserve, which may be set to become less independent, a U.S. stock market that critics say is expensive, threats of tariffs and heavy debt loads for governments worldwide.

Their prices cratered on Friday, including a 31.4% plunge for silver. Some on Wall Street saw it as a result of President Donald Trump’s nomination of Kevin Warsh as the next chair of the Fed.

The Fed’s chair has a big influence on the economy and markets worldwide by helping to dictate where the U.S. central bank moves interest rates. That affects prices for all kinds of investments, as the Fed tries to keep the U.S. job market humming without letting inflation get out of control.

In other dealings early Tuesday, benchmark U.S. crude fell 4 cents to $62.10 a barrel. Brent crude shed 13 cents to $66.17 a barrel.

The U.S. dollar declined to 155.52 Japanese yen from 155.61 yen. The euro cost $1.1819, up from $1.1791.

Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama