Asian stock markets soared on Thursday after U.S. President Donald Trump announced a 90-day delay in imposing sweeping tariffs on key trading partners, easing investor fears of a full-blown global recession. Despite raising duties on Chinese imports to 125%, the move provided relief across financial markets in Asia, spurred by Wall Street’s overnight rebound.
“People were getting yippy, a little bit afraid,” Trump said, using a sports term to describe nervous reactions on trading floors. He cited market volatility and stressed the need for flexibility, denying any policy reversal.
Asian Markets Rally Following Tariff Delay
In Hong Kong, the Hang Seng Index jumped over 4%, extending a rebound after Monday’s historic 13% plunge — its worst single-day fall since the 1997 Asian financial crisis. Shanghai’s Composite Index also rose by more than 1%.
Meanwhile, Tokyo’s Nikkei 225 surged 8.3%, Seoul and Singapore each gained over 5%, while Sydney and Jakarta rallied more than 4%.
Taipei recorded a historic 9.3% gain, bouncing back from Monday’s sharp 9.7% loss — its worst on record. Vietnam, facing significant U.S. tariffs, posted a 6.5% increase. Markets in Manila and Wellington also traded strongly in the green.
Optimism Grows Over Potential Chinese Stimulus
Chinese equities were further buoyed by expectations that Beijing will introduce new stimulus measures to cushion the economic impact of rising tariffs. Recent official data showing a continued drop in consumer prices has reinforced these hopes.
“Asia markets are flipping the switch — from fear to euphoria — as Trump throws a 90-day lifeline, pausing the reciprocal tariff barrage,” said Stephen Innes of SPI Asset Management.
Tech Stocks and Apple Suppliers Lead Gains
Tech giants were among the top gainers, with Sony, Sharp, Panasonic, and SoftBank recording double-digit increases. Apple suppliers also posted impressive rallies — Hong Kong-listed AAC Technologies surged 23%, while Taiwan’s Hon Hai rose nearly 10%.
“We just witnessed one of the all-time bouncebacks — and now, we look for Asia investors, much like their North American counterparts, to step in and buy the ‘yips’,” added Innes.
Global Market Reactions and Economic Implications
Trump’s aggressive trade measures — which include maintaining a 10% levy on multiple countries and hiking duties on China — sparked widespread concern among global investors. U.S. Treasury yields edged lower after a successful auction of $38 billion in notes, calming bond market jitters.
Minutes from the U.S. Federal Reserve’s March meeting revealed internal concerns about the broadening scope of tariffs and the difficult trade-offs ahead between inflation control and economic growth.
Commodities and Currency Markets
Oil prices eased slightly following Wednesday’s more than 4% rebound. However, both WTI and Brent crude remain under pressure due to ongoing demand concerns. Gold prices rallied nearly 2%, while Bitcoin surged over 6%.
Key Market Figures at 02:30 GMT
- Tokyo (Nikkei 225): +8.3% at 34,353.17
- Hong Kong (Hang Seng): +4.2% at 21,108.06
- Shanghai Composite: +1.6% at 3,236.06
- Dollar/Yen: 147.00 (down from 147.82)
- Euro/Dollar: $1.0970 (up from $1.0948)
- Pound/Dollar: $1.2825 (up from $1.2810)
- Euro/Pound: 85.54 pence (up from 85.45)
- WTI Crude: $61.98 (down 0.6%)
- Brent Crude: $64.96 (down 0.8%)
- Dow Jones (NY): +7.9% at 40,608.45
- FTSE 100 (London): -2.9% at 7,679.48