Asia markets surge after U.S. India tariff deal

February 3, 2026 (MLN): Asia markets climbed sharply on Tuesday after U.S. President Donald Trump said the United States and India had finalized a trade agreement that includes immediate tariff reductions and expanded bilateral commerce, lifting risk appetite across global markets.

According to Trump, the agreement follows a phone call with Indian Prime Minister Narendra Modi and paves the way for both countries to begin cutting tariffs on each other’s goods, as reported by CNBC.  

He added that India would increase purchases of U.S. products and shift its crude oil imports away from Russia toward the United States and potentially Venezuela.

Indian equities led regional gains, with the benchmark Nifty 50 surging nearly 5% at the open before paring some gains to trade up 2.73%.

The Sensex index was also higher by 2.66%, reflecting optimism over improved trade access and export prospects.

Japanese stocks extended their rally, with the Nikkei 225 jumping more than 3% to a fresh record high, while the broader Topix index advanced 2.34%.

In South Korea, the Kospi surged over 5%, triggering a buy sidecar that temporarily halted purchase orders after KOSPI 200 futures rose more than 5% for over a minute. The smaller Kosdaq index added 2.59%.

Elsewhere in the region, Hong Kong’s Hang Seng Index rose 0.48%, while mainland China’s CSI 300 gained 0.75%.

Australia’s S&P/ASX 200 climbed 1.3% after the Reserve Bank of Australia raised its policy rate by 25 basis points to 3.85%, marking its first rate hike since November 2023 as inflation remained elevated.

The RBA’s decision aligned with market expectations and followed data showing inflation at its highest level in six quarters.

Central bank have continued to push back against near-term rate-cut expectations, citing persistent price pressures and reaffirming the bank’s inflation target of 2.5%.

Attention also remained on precious metals after extreme volatility in recent sessions.

Silver prices plunged around 30% last Friday, marking the metal’s worst single-day decline since 1980, while gold dropped nearly 10%.

On Tuesday, both metals rebounded, with spot gold rising 2.22% to $4,769.33 per ounce and silver gaining 3.81% to $82.39 per ounce.

Overnight in the United States, equities advanced as Wall Street began the new month on a positive note, with investors looking past recent sharp declines in silver and bitcoin.

The Dow Jones Industrial Average rose 1.05% to close at 49,407.66, while the S&P 500 added 0.54% to 6,976.44. The Nasdaq Composite also gained 0.56%, ending at 23,592.11.

Markets now remain focused on the broader implications of the U.S. India trade agreement, central bank policy shows, and ongoing volatility in commodities as investors assess the global economic outlook.

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