Asia breathes a sigh of relief and staged a string rebound today after the brutal Monday wiped billions off market valuations, Tuesday brought a wave of cautious optimism across Asia’s trading floors. Tracking the cues, India’s GIFT Nifty indicates a green opening for the domestic benchmark indices. The benchmark Nifty 50 suffered its sharpest fall in 10 months just a day earlier.

GIFT Nifty signals rebound for Indian markets

As of the early trading hours, the GIFT Nifty was trading above 22,600, well above Monday’s Nifty 50 close of 22,161.60. The previous session had seen both the Nifty and Sensex slide over 3% each, triggered by heavy foreign fund outflows and fears around fresh US tariffs. Foreign institutional investors (FII) dumped Indian shares worth $1.05 billion, while domestic players tried to cushion the blow by picking up $1.41 billion worth of stocks.

ALSO READ

Asia pick up the pieces

Elsewhere in Asia, major indices tied to recover from the tariff triggered shock. Japan’s Nikkei 225, which had collapsed nearly 8% on Monday, soared over 5% in early trade. South Korea’s Kospi added nearly 2%, and Australia’s ASX 200 rose by 1%. This surge from the red to the green was boosted by gains in banking and mining stocks after reassurances from Treasurer Jim Chalmers.

Taiwan tanks, Hong Kong cautiously up

Not all markets joined the bounce-back. Taiwan’s Taiex index extended its pain, plunging another 5% after Monday’s 10% rout. Hong Kong’s Hang Seng managed to rise by 1.66%, while Shanghai’s Composite dipped slightly due to the lingering uncertainty over the escalating US-China trade war.

ALSO READ

Tariff tensions still loom large

The selloff was sparked by US President Donald Trump’s announcement of sweeping new tariffs. In retaliation, Beijing hit back with its own levies. Trump has now threatened an additional 50% duty, to which China’s commerce ministry has vowed to retaliate “till the end.”

All eyes on RBI

Back home, market players are now looking to the RBI, which is widely expected to cut interest rates by 25 basis points on Wednesday.