Asian Markets Surge After Trump’s Tariff Pause; Nikkei Soars 7% – News18
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Asian equity markets soared on Thursday, echoing the massive overnight rally on Wall Street. Japan’s Nikkei 225 skyrocketed 7.38%
Asian Markets Rejoice
Asian Markets Rally: Asian equity markets soared on Thursday, echoing the massive overnight rally on Wall Street. Japan’s Nikkei 225 skyrocketed 7.38%, while the broader Topix index climbed 7.12%. South Korea’s Kospi surged 5%, and the tech-heavy Kosdaq rose 4.61%. Hong Kong’s Hang Seng Index opened 2% higher. However, all eyes are on Chinese markets, as U.S. President Donald Trump’s tariff pause notably excluded China.
Wall Street’s Record-Breaking Rebound
The rally followed a dramatic rebound in U.S. markets. The S&P 500 surged nearly 10%, marking its biggest one-day gain since 2008 and its third-largest since World War II. The Dow Jones jumped 7.9%—its best day since March 2020. The Nasdaq Composite soared 12%, posting its strongest single-day gain since January 2001 and its second-best day ever.
Trump’s Tariff Shift: A 90-Day Pause—But Not for China
In a significant policy shift, President Trump announced a 90-day suspension of reciprocal tariffs on more than 75 countries. However, China was excluded from this reprieve. Trump accused Beijing of unfair practices and immediately raised tariffs on Chinese imports to 125%.
China Hits Back Hard
China retaliated swiftly, announcing an 84% tariff on American goods—up from the previous 34%—effective April 10. Beijing also added 12 U.S. firms to its export control list and labeled six American companies as “unreliable entities,” escalating trade tensions further.
Trump Explains His Decision
Trump explained that the pause was meant to reward countries engaged in “fair and respectful” trade talks with the U.S. The reciprocal tariff was reduced to 10% for the 90-day window to allow room for negotiation, he said.
Fed Signals Caution
Meanwhile, minutes from the U.S. Federal Reserve’s March FOMC meeting showed growing support for slowing the pace of balance sheet runoff. While some policymakers remained divided, the prevailing view was to proceed cautiously, particularly in light of ongoing uncertainty over the U.S. debt ceiling.
Dollar Slips as Rupee Strengthens
The U.S. Dollar Index (DXY) dipped 0.17% to 102.73, while the Indian rupee appreciated 0.49%, closing at Rs 86.69 against the greenback. Currency markets remain focused on developments in U.S.-China trade tensions for future cues.
Oil Holds Steady
Crude oil prices were little changed in early Thursday trade. WTI crude edged down 0.18% to $65.35 per barrel, while Brent crude slipped 0.67% to $61.99.
Indian Markets Closed for Mahavir Jayanti
Indian stock exchanges (NSE and BSE) are closed today, April 10, in observance of Mahavir Jayanti. Trading will resume on Friday, April 11.
Markets in India Struggled on April 9
Before the holiday, Indian indices closed in the red. The Sensex lost 379.93 points to settle at 73,847.15, while the Nifty 50 declined 136.70 points to finish at 22,399.15.
FII Outflows Continue
Foreign Institutional Investors (FIIs) sold Indian equities worth Rs 4,358 crore on April 9, extending their selling streak to eight consecutive sessions. In contrast, Domestic Institutional Investors (DIIs) remained net buyers, purchasing Rs 2,976 crore worth of equities.
