South Korean chipmakers propelled a broad advance in Asian equities on Tuesday, while commodities rallied across the board. The Japanese yen extended its upward momentum as market expectations build for another rate hike by the Bank of Japan.

The KOSPI index climbed 2.1%, closing above the 7,000-point mark for the first time in 15 trading sessions. Samsung Electronics and SK Hynix led the gains, fueled by optimism over robust demand for high-performance memory chips following the release of OpenAI's new artificial intelligence model, Astra. The broader MSCI Asia Pacific Index rose 0.4%, though Japan's Topix and Australia's S&P/ASX 200 each dipped by approximately 0.6%.

The yen strengthened to 152.89 against the US dollar during Asian trading, its highest level since February. The currency has now appreciated 4.2% this month, making it the top performer among Group of Ten currencies.

Japan's Finance Minister Satsuki Katayama reiterated at a Tuesday briefing that the government's stance on exchange rates remains unchanged since the joint intervention with US authorities. She affirmed that officials are committed to maintaining an orderly foreign exchange market and will continue close communication with US Treasury Secretary Bessent.

In commodities, international benchmark Brent crude rose 0.5% to $97.46 per barrel. Spot gold advanced 0.7% to $4,433 an ounce, while London copper futures hit a fresh record high on Tuesday.

Korean Chip Stocks: AI Demand Expectations Ignite Sentiment

The MSCI Asia Pacific Index gained 0.4%, while the KOSPI jumped 2.1%, driven primarily by chip giants SK Hynix and Samsung Electronics. Technology-heavy Nasdaq 100 futures also rose 0.4%.

The demand outlook tied to the AI supply chain served as a direct catalyst for the rally in Korean chip stocks. After OpenAI unveiled its next-generation AI model, Astra, market optimism regarding demand for high-performance memory chips has notably intensified.

The KOSPI broke above the 7,000-point threshold for the first time in 15 sessions, following a 4.61% surge the previous day that left the index at 6,995.39, just 4.61 points shy of the round number. SK Hynix and Samsung Electronics rose 4.8% and 2.8%, respectively, in early trading.

Delayed Impact of Coordinated Intervention Becomes Apparent

The yen continued its advance from Monday, breaching the 153 level against the dollar at one point. This latest leg of appreciation brings the yen's monthly gain to approximately 4.2%, making it the best-performing currency in the G10 group.

The current yen strength reflects the delayed effect of the massive intervention conducted about a month ago. Japan deployed approximately ¥15.4 trillion (about $101 billion) in market operations, with the US also supporting the yen for the first time in 28 years.

However, the initial impact of that intervention was muted, with the yen hovering near 160 until September 2. The real move began only recently, as expectations of a policy shift by the Bank of Japan intensified and speculation grew over potential adjustments to the asset allocation of the Government Pension Investment Fund (GPIF). This prompted a rapid unwinding of bearish yen positions.

Rinto Maruyama, senior rates and FX strategist at SMBC Nikko Securities, noted that a break below 154 could trigger a larger round of carry trade unwinding and stop-loss cascades, leaving room for further yen appreciation. However, he also pointed out that the current lighter net positioning means investors have room to rebuild short yen positions.

Finance Minister Katayama said at a Tuesday press conference that Japan's policy stance has not changed since the joint intervention with the US, and authorities will strive to maintain market order. She added that she would continue to maintain close contact with US Treasury Secretary Bessent.

A government report released Tuesday showed Japan's second-quarter economic growth exceeded earlier estimates. Meanwhile, July wage growth hit a nearly 30-year high, supporting widespread market expectations of a rate hike at next week's BOJ meeting.

From a medium-term structural perspective, NAB strategist Catril believes a BOJ rate hike next week is a necessary condition, but "to sustain the recent gains, the BOJ needs to deliver a hawkish signal and reiterate that the likelihood of another hike this year is higher than not."

Some analysts adopt a more cautious stance. Akira Moroga, chief market strategist at Aozora Bank, argues that the widening Japan-US interest rate differential and Japan's trade deficit remain structural headwinds for the yen. After this round of position adjustment concludes, he sees room for USD/JPY to rebound toward 155, with range-bound trading likely in the near term.

Motonari Sakai, senior dealer in forex and financial products at Mitsubishi UFJ Trust Bank, noted that even if US inflation data due Friday comes in below expectations, Fed Chair Warsh's cautious stance on inflation is unlikely to shift, which could reactivate the trend of a stronger dollar and weaker yen.

Oil Price Inflation Pressure Weighs on Markets While Copper Maintains Strength

Traders are closely monitoring details of an agreement between Iran and Oman regarding shipping management in the Strait of Hormuz.

Iran's Supreme National Security Council Secretary Rezaei announced on September 6 that Iran would implement new restrictions in the Persian Gulf and Gulf of Oman. The new restricted zones extend from the US naval blockade line to loading ports, with vessels acting without coordination with Iran facing sanctions listing, insurance invalidation, and subsequent passage difficulties.

Meanwhile, Iranian Foreign Ministry spokesman Esmail Baghaei confirmed that the agreement between Iran and Oman on Hormuz shipping management has entered its final stage, including a temporary safe shipping route, and is slated for filing with the International Maritime Organization.

These developments briefly pressured oil prices, as optimism over the potential for the Iran-Oman agreement to facilitate shipping tempered gains. However, prices remain elevated overall, with Brent crude still near $97 per barrel, close to six-week highs.

Anastasia Amoroso, chief investment strategist at Partners Group, said in a Bloomberg Television interview that global equities may enter a consolidation phase as rising oil prices increase pressure on central banks to hike rates.

London copper extended its overnight strength during Tuesday's Asian session, rising 0.69% and breaking through the 14,600 level, amid market expectations that the Trump administration will expand tariffs to include refined metal imports.

Spot gold reversed its previous session's losses, rising 0.7% on the day.