Global stock markets are experiencing a dramatic surge. Signals of tariff relief from the United States have injected optimism into the global markets. Asian markets began Thursday with a spectacular rally, building on this momentum. Japan's Nikkei 225 index jumped over 10% in early trading, one of its fastest gains in recent years.
Asian Markets: The impact of US President Donald Trump's latest tariff decisions is clearly visible in global stock markets. Wednesday saw a significant surge in the US stock market, followed by a b opening in Asian markets on Thursday. Japan's Nikkei index surged over 10% in early trading, a substantial jump in recent years. Similarly, South Korea's Kospi index rose by 5.4% and the Kosdaq by 4.61%.
However, Hong Kong's Hang Seng index showed some weakness in early trading. Meanwhile, Australia's S&P/ASX 200 Futures index traded up by 7%, its largest gain since March 2020. Overall, a positive trend is observable in global markets following Trump's decision.
Trump's Decision Creates a 'Boom Effect' in US Markets
• US President Donald Trump announced a 90-day reprieve in his tariff policy. This led to a significant surge in US markets.
• The Dow Jones jumped 2403 points (6.38%), closing at 40,048.59.
• The S&P 500 saw a significant jump of 9.5%, closing at 5456.90.
• The NASDAQ surprised everyone with a massive 12.16% increase, closing at 17,124.97.
Surge in Asia
• Asian markets opened bly on Thursday:
• Japan's Nikkei 225 surged more than 10%, generating significant investor enthusiasm.
• South Korea's Kospi and Kosdaq indices traded with gains of 5.4% and 4.61%, respectively.
• Australia's S&P/ASX 200 Futures also jumped 7%, its biggest increase since March 2020.
• However, Hong Kong's Hang Seng showed some sluggishness, opening with a slight dip in early trading.
US-China Trade War Heats Up Again
While tariff relief has been granted, the Trump administration has increased tariffs on China from 104% to 125%. In response, China raised tariffs on US products from 34% to 84%. Therefore, uncertainty remains regarding the sustainability of this momentum. Amidst this global surge, Indian investors could only follow the news as Indian stock markets were closed for Mahavir Jayanti. Indian markets saw a decline on Wednesday, with investor sentiment remaining cool despite the RBI's repo rate cut.
