Asian Stocks Pare Tariff-led Losses, Tokyo Hit By Political Turmoil

Market Overview - Most Asian stocks rose, following a rally on Wall Street, as Donald Trump softened his stance on China, which had previously included threats of 100 percent tariffs [1][2] - The Nasdaq surged over 2%, while the S&P 500 and Dow each increased by more than 1% on Monday, recovering from previous losses [3] Political and Economic Factors - Trump's initial aggressive comments regarding China's rare earths restrictions raised fears of a renewed trade war, but his later conciliatory remarks encouraged market recovery [2][3] - Political turmoil in Japan, including the collapse of the ruling coalition, has led to uncertainty regarding future leadership and economic policies [5][6] Technology Sector - Tech firms remain in high demand, particularly following Broadcom's partnership with OpenAI to provide significant computing power [4] - OpenAI's recent deals with major US companies like Nvidia, AMD, and Oracle, as well as South Korea's Samsung and SK Hynix, indicate strong investment in AI infrastructure [5] Commodity Market - Safe-haven metals, particularly silver and gold, reached record highs, with silver hitting $52.90 and gold nearing $4,150, driven by concerns over rising debt and potential US interest rate cuts [1][7] - Oil prices also saw increases, with West Texas Intermediate up 0.4% to $59.75 per barrel and Brent North Sea Crude up 0.4% to $63.56 per barrel [8]