Stocks Surge, Gold Rebounds as Tariff Cuts and Rate Hikes Boost Markets

Asian stocks and gold prices surged following calmer trade and a U.S.-India tariff deal. Australia's central bank raised interest rates, joining Japan in tightening policy amid inflation. U.S. tariff cuts on Indian goods uplifted India's market. Meanwhile, gold rallied, and speculation affected Chinese tech stocks.

Asian stock markets and gold prices witnessed a significant uptick on Tuesday following calmer trading conditions after recent volatility in metals markets. This positive shift was fueled by a U.S.-India deal aimed at reducing tariffs, coupled with an Australian interest rate hike by the central bank, which also boosted the Australian dollar.

Australia's central bank joined Japan in tightening monetary policy, citing inflation and a constrained labor market as reasons for increasing the cash rate to 3.85%. This move was largely anticipated by the market, which now expects a follow-up in May. The announcement elevated the Australian dollar by about 1%.

Additionally, U.S. President Donald Trump's decision to cut tariffs on Indian goods from 50% to 18% in exchange for India halting Russian oil purchases and easing trade barriers positively impacted India's market. The news buoyed India's rupee and stocks. Meanwhile, speculation about potential tax hikes on Chinese internet giants negatively affected companies like Tencent and Alibaba.

(With inputs from agencies.)