The Asian stock markets are currently experiencing a positive development, particularly following the surprising announcement of a tariff pause by U.S. President Donald Trump. This measure has led to a significant increase in stock prices in East Asia, with the Nikkei index in Tokyo making particularly strong gains.
Background of the Tariff Pause
U.S. President Donald Trump announced a 90-day suspension of planned punitive tariffs for all countries except China. This decision came as a surprise and has led to a wave of relief in the international financial markets. However, the tariff pause does not affect China, which continues to suffer under high tariffs. The U.S. has even raised import duties on Chinese goods to 125 percent, further escalating the trade conflict between the two countries.
Development of the Stock Markets
Japan
- Nikkei Index: The Nikkei 225 in Tokyo experienced an impressive increase of over eight percent, reaching 34,340 points during midday trading. This rise is one of the strongest in years and reflects the positive sentiment of investors.
- Topix Index: The broader Topix index also gained significantly, with an increase of about 7.84 percent.
China
- CSI 300: Despite the tense trade situation with the U.S., the CSI 300 on the Chinese mainland was able to edge up by one percent. This is noteworthy as China was not affected by the tariff pause.
- Hang Seng Index: In Hong Kong, the Hang Seng Index rose by about two percent, even though the city did not directly benefit from the tariff pause.
South Korea
- Kospi Index: The South Korean Kospi Index gained more than five percent, attributed to the renewed confidence of investors.
Taiwan
- Taiwanese Market: The market in Taiwan experienced a particularly strong increase of nine percent, as the island republic could benefit from a possible tariff reduction by the U.S.
Outlook
The tariff pause has led to a short-term recovery of the markets; however, long-term uncertainty remains, especially regarding the trade conflict between the U.S. and China. Investors continue to monitor developments with interest, as the tariff pause opens up opportunities for investment in the region but also carries risks should tensions escalate again.