Asia Markets Rally After U.S.–India Tariff Shift; Commodities and Tech Moves Stoke Optimism

Equity markets across the Asia–Pacific reversed earlier weakness after a concentrated set of policy shifts and corporate headlines refocused investor positioning. India’s benchmark jumped sharply at the open — up roughly 5% — after Washington signaled a reciprocal tariff cut (reported from 25% to 18%) alongside commitments to boost U.S. purchases and alter sourcing, an outcome that prompted an immediate re‑rating of external demand for Indian exporters. South Korea’s Kospi staged a dramatic recovery and briefly traded up roughly 6.7% amid order‑flow swings and intraday trading interruptions that accentuated the move. Precious metals retraced recent losses: spot gold climbed near 4.8% while silver rallied more than 7%, moves that market participants said reflected a mix of a liquidity pivot, speculative positioning and pockets of thin depth in certain venues. The session’s risk tone was undercut and complicated by U.S. policy uncertainty — reports about who will lead the Federal Reserve and a Justice Department inquiry touching on Fed‑related conduct added an institutional‑risk overlay that kept investors focused on headlines. Corporate developments supplied mixed signals: high‑profile consolidation in AI — notably reports that SpaceX is absorbing xAI with plans to prepare the combined entity for a future IPO and media‑reported valuation targets approaching $1.25 trillion — supported a tech consolidation narrative, while another large cloud‑software provider plunged about 10% after weak guidance, a decline that reportedly erased roughly $357 billion in market value in one session. Hardware and memory stacks also influenced sentiment after SoftBank’s unit and Intel disclosed a collaboration on next‑generation memory with prototype targets by the fiscal year ending March 31, 2028 and commercialization aimed at fiscal 2029. The Reserve Bank of Australia’s 25‑basis‑point hike to 3.85% reinforced the message that persistent inflation remains a regional constraint on risk assets. Crypto markets were a notable crosswind: continued spot‑ETF outflows and concentrated long liquidations compressed order books and amplified volatility, a dynamic underscored by Chainalysis figures showing roughly $16.1 billion of flows tied to organized networks. External shocks — including a major U.S. winter storm that disrupted travel and regional power delivery — and local legal and geopolitical headlines added to an environment where headline sensitivity magnified short‑term swings. Taken together, the episode highlighted how a few discrete policy and corporate developments can reallocate capital rapidly, generating a near‑term lift for risk assets even as liquidity constraints and policy uncertainties leave room for rapid reversals.