Asian-Pacific markets jumped on Thursday, mirroring Wall Street’s strongest rally since the global financial crisis, after United States President Donald Trump announced a 90-day pause on tariff increases for all nations except China.
By 11 am AEST (1 am GMT), Australia’s S&P/ASX 200 gained 4.9%, while South Korea’s Kospi 200 added 4.7%.
Japan’s Nikkei 225 led the region with a stunning 8.3% rise, driven by a broader wave of optimism. Japan's Nikkei futures jumped 10% in early trade, triggering a circuit breaker that temporarily halted trading due to excessive volatility.
Supporting the Japanese market’s upward momentum, fresh data from the Bank of Japan showed producer prices rose 4.2% year-on-year in March, ahead of market expectations for a 3.9% increase.
Investor attention remains focused on China, where markets are expected to react to heightened trade tensions. The U.S. announced it would raise tariffs on Chinese imports to 125%, prompting a retaliatory move from Beijing to impose an 84% levy on American goods.
U.S. equity markets posted their largest gains in years on Wednesday. The Dow Jones Industrial Average climbed 7.9%, the S&P 500 surged 9.5%, and the Nasdaq Composite soared 12.2%, driven by Trump’s pledge to ease trade tensions for most nations over the next three months.
In commodity markets, Brent crude prices popped 4.2% to US$65.48 per barrel, while spot gold added 3.3% to US$3,082.56 per ounce.
Despite these tensions, Chinese equities closed higher. The Shanghai Composite rose 1.3% to 3,186.8, while the CSI 300 climbed 1% to 3,686.8. Hong Kong’s Hang Seng Index added 0.7% to finish at 20,264.5.
In contrast, India’s BSE Sensex slipped 0.5% to 73,847.2.
European markets closed lower amid global volatility. London’s FTSE 100 dropped 2.9% to 7,679.5, Germany’s DAX declined 3% to 19,670.9, and France’s CAC 40 shed 3.3% to finish at 6,863.0.
