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Asian Stocks Surge as Trump Pauses Tariffs
Asian stocks surged on Thursday, with Japan’s Nikkei 225 jumping more than 2,000 points following President Donald Trump’s decision to ease tariffs on most of the US’s major trading partners. The rally came after a record-breaking day for US stocks on Wednesday, fueled by growing investor optimism over the easing of trade tensions.
The Nikkei 225 soared 8.3% to 34,353.17, while Australia’s S&P/ASX 200 climbed 4.7% to 7,722.90. South Korea’s Kospi rose 5.5% to 2,419.37, and Hong Kong’s Hang Seng gained 3.7% to 21,003.84. The Shanghai Composite also increased 1.5% to 3,232.86.
Stephen Innes, managing partner at SPI Asset Management, described the shift in sentiment as a move "from fear to euphoria." He added, “It’s now a manageable risk, especially as fears of a global recession ease and Asia’s exporters breathe a huge sigh of relief.”
Trump’s announcement came after the US recognized over 75 countries that had been negotiating on trade, without imposing retaliatory tariffs. He confirmed a 90-day pause on most tariffs for these nations, although a 10% tariff on nearly all global imports remained. Notably, Trump also indicated that tariffs on Chinese goods would rise to 125%, signaling potential market volatility.
In the US, the stock market reacted positively, with the S&P 500 surging 9.5%—its third-best day since 1940. The Dow Jones rose by 2,962 points, or 7.9%, and the Nasdaq jumped 12.2%, as fears of a global economic slowdown eased following Trump’s tariff pause.