*

RBA hikes rates to 3.85%; Aussie breaks above 70c

*

India trade deal boosts stocks, rupee

*

Nikkei higher, yen and bonds squeezed ahead of Japan

election

(Updates to Asia afternoon)

By Tom Westbrook

SINGAPORE, Feb 3 (Reuters) - Gold and Asian stocks were

on the rebound on Tuesday as trade took a calmer tone after wild

swings in metals markets and a deal to cut U.S. tariffs on India

helped the mood, while the Australian dollar rose ‌after an

interest rate hike.

Australia's central bank joined Japan as the only

developed-world economy to tighten policy, saying above-target

inflation and a tight labour market justified a unanimous

decision to ​lift the cash rate 25 basis points to 3.85%.

Markets had mostly anticipated the move, though are now

rushing to ‍price in a follow-up in May which was enough to push

the Aussie about 1% ⁠higher and over 70 U.S. ⁠cents.

India's rupee and stocks cheered an

announcement by U.S. President Donald Trump that tariffs on

Indian goods would be cut from 50% to 18% in return for ‌New

Delhi halting Russian oil purchases and lowering trade barriers.

Details were ​scarce.

Elsewhere Japan's Nikkei jumped 4% to recoup

Monday's losses and South Korea's KOSPI rose 5%.

S&P 500 futures were up 0.1% with traders eyeing a

busy few sessions of earnings.

With so many positions stopped out ⁠by collapses in crowded

silver and gold bets, investors were ‍taking stock and ​sitting

back, according to Steven Leung, director of institutional sales

at brokerage UOB Kay Hian in Hong Kong.

"It will take a long time for them to rebuild a bull or bear

position...so they are staying away from ‍the market," he said.

Speculation that tax hikes on Chinese telcos could extend to

internet giants dragged stocks such as Tencent ( TCTZF ) and

Alibaba ( BABA ) down by more than 3%.

METALS STABILISE

Gold was up 3% in Asia to $4,820 an ounce, a bounce

of around 9% from Monday's lows. Silver traded 5% higher to

$83.34 an ounce.

Gold, silver, stocks and the dollar have all whipsawed since

Trump's nomination of Kevin Warsh to lead the Federal Reserve

sent metal prices tumbling. Warsh is seen shrinking the Fed's

balance sheet, pushing ​up bond ‍yields, which is negative for

precious metals that pay no income.

However, the dive in prices on Friday and on Monday went

beyond fundamentals and was a wipeout for leveraged positions

and sent tremors through global commodity and ​stock markets as

traders sold other assets to bail out losing bets.

Looking ahead, Wall Street earnings are in the frame, with

chipmaker AMD and server equipment company Super Micro

Computer ( SMCI ) due to report after market.

TAKAICHI TRADE

Currency markets were finding a level after last week's

sharp spike lower in the dollar. The euro bought $1.1809

in the Asia session, off highs hit above $1.20 late in January.

The yen traded at 155.41 per dollar and has retraced

about half the gains it made on the greenback that followed talk

of possible joint U.S.-Japan intervention to boost the yen.

Polls ​show Prime Minister Sanae Takaichi's Liberal

Democratic Party heading for a landslide victory at the

weekend's election -- putting pressure on bonds and the yen as

it would hand a mandate to her agenda for fiscal loosening.

Japanese Finance Minister Satsuki Katayama on Tuesday was

downplaying weekend remarks from Takaichi highlighting benefits

of a weak ‍yen, at odds with authorities' efforts to support it.