Asian Stocks Recover from Tariff-Related Losses as Trump Eases Rhetoric
Most Asian stocks rose on Tuesday, following a rally on Wall Street, as US President Donald Trump toned down his rhetoric against China. This shift in tone came after Trump threatened China with 100 percent tariffs, sparking fears of a reignited trade war. The change in stance helped to alleviate concerns, leading to a surge in stocks, with the Nasdaq soaring over two percent and the S&P 500 and Dow each rising over one percent on Monday.
In Asia, Hong Kong, Shanghai, Singapore, Seoul, Sydney, Taipei, and Manila all saw gains, although Wellington and Jakarta experienced declines. Tokyo, however, struggled due to ongoing political turmoil in Japan, where the ruling coalition collapsed on Friday. The alliance’s junior partner, Komeito, quit the coalition, casting doubt on whether Sanae Takaichi, the ruling party’s new leader, will be able to become the country’s first female prime minister.
Despite the uncertainty, tech firms remain in high demand, driven by recent partnerships and investments in AI and data centers. Chip giant Broadcom’s partnership with OpenAI to provide 10 gigawatts of computing power is the latest example of this trend. Other companies, including Nvidia, AMD, Oracle, Samsung, and SK Hynix, have also made significant investments in AI and data centers.
In commodity trading, silver reached a record high of $52.90, while gold continued to break successive records, reaching nearly $4,150. The demand for safe-haven assets is being driven by expectations of further US interest rate cuts, concerns over rising debt, and warnings that the global rally fueled by AI may be overdone.
The US-China trade war has been a major concern for investors, with China vowing to “fight to the end” in the dispute. The situation remains fluid, with markets closely watching developments. As of 0230 GMT, key figures showed Tokyo’s Nikkei 225 down 1.2 percent, while Hong Kong’s Hang Seng Index and Shanghai’s Composite rose 0.3 percent and 0.5 percent, respectively. The euro and pound both gained against the dollar, while West Texas Intermediate and Brent North Sea Crude oil prices rose 0.4 percent each.
The recovery in Asian stocks is a significant development, given the recent losses sparked by tariff concerns. As investors continue to monitor the situation, the next steps in the US-China trade war will be crucial in determining the direction of markets. With the global economy facing various challenges, including rising debt and AI-driven market fluctuations, investors are seeking safe-haven assets and watching for signs of stability in the trade war.