Global markets opened Tuesday on a buoyant note, led by a rally in Asian equities driven by optimism around artificial intelligence, while uncertainty over US monetary policy and geopolitics pushed investors toward safe havens such as gold.
Commodities were mixed, with oil climbing on Middle East tensions and metals extending a strong start to the year.
Asian markets rally on AI optimism
Asian share markets moved broadly higher on Tuesday, led by a surge in Japanese stocks after markets reopened from a holiday.
Japan’s Nikkei jumped 3.3% to record highs, supported by a slide in the yen to historic lows and growing expectations of fiscal stimulus.
Reports confirmed that Prime Minister Sanae Takaichi plans to call an early election in an effort to strengthen her coalition’s parliamentary majority, a move seen as providing scope for more aggressive economic policies.
Elsewhere in the region, South Korea and Taiwan both hit all-time peaks, while Chinese blue chips climbed to a four-year high.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4% to a fresh record.
Optimism around artificial intelligence continued to underpin sentiment. “We see global equities continuing to climb in 2026, targeting circa 10% upside for the MSCI AC World to year-end,” analysts at Citi said, while cautioning that high valuations leave little room for earnings disappointments.
In Europe, futures pointed modestly higher, while US stock futures eased ahead of a key December inflation reading and the start of earnings season for major banks.
Uncertainty surrounding the independence of the US Federal Reserve weighed on the dollar and boosted demand for gold.
The news of a US Justice Department criminal investigation into Fed Chair Jerome Powell raises concerns that the central bank could face political pressure to keep rates too low for too long.
The dollar index hovered near 98.94 after falling overnight, while the euro edged higher.
Gold broke above $4,600 an ounce for the first time before steadying slightly lower.
“Gold serves as a catch-all, and a default hedge of last resort for fear and uncertainty,” said Christopher Louney, a gold strategist at RBC Capital Markets, who sees potential gains as high as $5,200 by year-end.
SK Hynix to build new advanced packaging plant
In corporate news, South Korea-based SK Hynix said it will invest 19 trillion won ($12.9 billion) to build a new advanced packaging plant in Cheongju, expanding capacity to meet surging AI-related demand.
Construction is set to begin in April, with completion targeted for the end of 2027.
The plant will focus on advanced packaging technology that combines multiple memory chips into a single high-density unit, improving performance and energy efficiency.
SK Hynix is a global leader in high-bandwidth memory used in AI processors, including those designed by Nvidia.
The company cited industry projections showing the HBM market growing at a compound annual rate of 33% between 2025 and 2030.
Trump presses Microsoft on electricity costs
US President Donald Trump said Microsoft will announce changes aimed at ensuring Americans do not face higher utility bills as the company expands data center capacity to support AI demand.
“I never want Americans to pay higher Electricity bills because of Data Centers,” Trump wrote on social media, adding that his administration is working with major technology firms on the issue.
Microsoft did not immediately comment, but the company has previously said it is managing the local impact of its data centers, even withdrawing plans for one project in Wisconsin amid opposition.
Aluminum and tin extend strong rally
In commodities, aluminum traded near its highest level since early 2022, while tin extended a sharp rally on expectations of tighter global supplies.
Except copper, most metals have surged on Tuesday.
Aluminum rose to around $3,187 a ton in London, close to Monday’s high, while tin climbed to about $48,470 a ton and is up nearly 20% in 2025.
Metals have started 2026 strongly, supported by supply constraints, falling interest rates, and demand linked to AI-driven infrastructure such as data centers and power grids.
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