Asian Stocks Rise, Gold and Silver Rebound
Asian stocks opened higher on Tuesday, attempting to stabilize after the market was shaken by extreme movements in gold and silver. In the early session, precious metals began to rebound, slightly improving risk sentiment after the volatility of the past few days subsided.
The market's mood improved thanks to US data: the Institute for Supply Management's manufacturing index jumped to 52.6 from 47.9. A reading above 50 indicates factory activity is expanding again—a signal that is usually positive for the economic outlook and corporate profits.
With signs of a revival in the manufacturing sector, market participants believe the US economy has not weakened as feared. Therefore, the focus shifted from "panic mode" to "selective mode": risk assets (stocks) benefited, while investors remained cautious as commodity movements remained vulnerable to surprises.
On the geopolitical-trade front, Donald Trump announced that tariffs on India would be lowered to 18% after Narendra Modi reportedly agreed to halt purchases of Russian oil. This news helped ease US-India tensions and provided an additional boost to market sentiment.
However, the market still faces significant uncertainty: the partial US government shutdown has delayed the release of January employment data from the BLS (originally scheduled for Friday). In Asia, attention is also focused on the Reserve Bank of Australia's expected 25 basis points interest rate hike. Meanwhile, precious metals remain in the spotlight after falling sharply following the news that Kevin Warsh was chosen to replace Jerome Powell at the Federal Reserve—which triggered a cleanup of speculative/leveraged positions in gold and silver. (asd)
Source: Newsmaker.id
