Asia stocks surge as Trump pauses tariffs for most countries; Nikkei jumps 8.8% | World News
Asian markets soared Thursday after US President Donald Trump announced a 90-day pause on most of his newly imposed tariffs, setting off a global rebound that followed Wall Street’s dramatic surge overnight. Japan’s benchmark Nikkei 225 led the way, jumping 8.8% to 34,510.86 in morning trading.Other regional indexes followed suit: the Topix in Japan rose 7.9% to 2,534.89, Australia’s S&P/ASX 200 gained 5.1%, and South Korea’s Kospi added 5.2%.
Markets in Hong Kong and Shanghai were also up.
Trump’s tariff pressure on China
In a social media post late Wednesday, Trump wrote, “I have authorized a 90 day PAUSE,” adding that countries not retaliating against the US would be spared from new import levies. However, tariffs on Chinese goods were raised significantly, including a tripling of duties on low-value items to 90%, effective from May 2.
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US Customs and Border Protection confirmed preparations to collect country-specific tariffs from 86 nations.
Trump said he was making “tailored deals” with nations open to negotiations, including several Asian countries and the European Union.
In a swift response, China raised its retaliatory tariffs on US goods to 84%, up from the earlier 34%. “The trade war is not over,” Quincy Kros, chief global strateg at LPL Financial said as per AP. “This is a breather, not a peace treaty.”
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Despite the escalation with China, market analysts said the broader 90-day pause offered temporary relief. “It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” said Stephen Innes, managing partner at SPI Asset Management, reported Reuters.
Tokyo leads with corporate gains
In Tokyo, Fast Retailing shares jumped 8%
Toyota Motor climbed 9.4%
Tokyo Electron gained 12%
Advantest surged 15%
Wall Street rebounds sharply
The optimism in Asia mirrored Wall Street’s rebound.
The S&P 500 spiked 9.5%, its third-best day since 1940, while the Dow Jones Industrial Average gained nearly 3,000 points (7.9%) and the Nasdaq surged 12.2%.
Europe reacts with losses
While Trump expressed willingness to negotiate with some countries, European markets are experiencing a financial loss as uncertainty persed. According to Euronews, “A sea of red could be seen across key European and US indexes on Wednesday afternoon as US President Donald Trump’s new tariffs came into effect.”
As of 15:00 CEST on Wednesday:
The Euro STOXX 50 was down 4.1%
STOXX 600 fell 4.4%
France’s CAC 40 dropped 4.2%
Germany’s DAX declined 4.2%
UK’s FTSE 100 lost 2.9%
Italy’s FTSE MIB fell 3.9%
Spain’s IBEX 35 dropped 3.4%Story continues below this ad
European auto stocks also took a hit. Volkswagen AG fell 2.6%, Mercedes-Benz Group AG was down 4.1%, and Ferrari N.V. declined 2.3%, as reported Euronews.
Vietnam opens dialogue with Washington
Vietnam, originally facing a 46% tariff, agreed to trade talks with the US.
The country committed to easing non-tariff barriers and curbing trade fraud, in a move welcomed Washington.Story continues below this ad
US Treasury Secretary Scott Bessent confirmed a 10% blanket tariff on global imports remains active, despite the broader pause. Bond markets responded positively, with the 10-year Treasury yield falling to 4.34%.
Still, experts urged caution. “There hasn’t been any significant progress in negotiations,” Andrea Cicione, head of research at TS Lombard, told The Guardian. “Until that happens, it’s difficult to turn more constructive as the risk of recession is going up.”
(With inputs from AP, Reuters, The Guardian)
