ISLAMABAD: (Web Desk) – Asian stocks rebounded on Tuesday as markets stabilised following a sharp sell-off triggered by a combination of currency volatility, precious metal plunges and geopolitical uncertainty.
The recovery was fuelled by a strong rally on Wall Street after US manufacturing data beat forecasts, showing activity expanded in January at its fastest pace since 2022 and marking the first growth in 12 months. The data revived optimism about the strength of the US economy and encouraged investors to re-enter risk assets.
Market turmoil earlier in the week had been sparked by a surge in the US dollar after President Donald Trump nominated Kevin Warsh, seen as the most hawkish candidate, to lead the Federal Reserve. Analysts said the move raised expectations of tighter monetary policy and reinforced confidence in the Fed’s independence.
Gold, Silver Rates in Pakistan Today – 2 February 2026
The dollar’s sharp rebound triggered a steep sell-off in precious metals, with gold falling to $4,402 and silver to $71, after both had recently hit record highs. Easing tensions between the US and Iran, following Trump’s comments expressing optimism over a diplomatic deal, further reduced demand for safe-haven assets and pushed oil prices sharply lower.
However, sentiment improved on Tuesday as markets digested the US data and New York stocks posted strong gains overnight.
Seoul led Asian markets with a surge of around five percent after heavy losses a day earlier, driven largely by renewed interest in artificial intelligence and semiconductor stocks. Tokyo’s Nikkei 225 jumped nearly three percent, while Hong Kong, Shanghai, Sydney, Singapore, Taipei and Manila also posted gains.
Analysts said Monday’s sell-off was driven largely by liquidity pressures rather than a deterioration in fundamentals, particularly in the technology sector.
Oil prices also rebounded modestly, with both Brent crude and West Texas Intermediate rising around 0.5 percent.
Investors are now closely watching developments in Washington after Trump urged lawmakers to swiftly pass a spending bill to end a three-day government shutdown. Republican House Speaker Mike Johnson said he was optimistic an agreement could be reached soon.
Despite the rebound, analysts cautioned that volatility in precious metals remains elevated and markets may need time to fully stabilise.
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