Asian Markets Recover Despite Trump’s Trade Policy Risks
Asian markets showed signs of recovery on Tuesday, helped by a rally in tech stocks on Wall Street. Investors remain cautious, however, as they try to understand Donald Trump’s tariff plans after reports suggested he might take a more focused approach to trade policies.
Markets in Tokyo rose by 2%, supported by a weaker yen, while Shanghai, Sydney, Singapore, Seoul, Taipei, Mumbai, Bangkok, and Jakarta also saw gains. In contrast, Hong Kong fell, with tech giant Tencent dropping over 7% after being added to a U.S. list of “Chinese military companies.”
The recovery followed a tech-driven surge in U.S. markets, where companies like Nvidia reached record highs. Taiwan-based Foxconn also reported strong results, boosting demand for semiconductor stocks.
Meanwhile, a report by The Washington Post suggested Trump’s team is considering applying tariffs only to certain critical goods, a narrower approach than previously expected. Trump, however, denied this claim, calling it “fake news” and insisting his tariff plans remain unchanged.
Tencent pushed back against its inclusion on the U.S. military-linked list, calling it a mistake and arguing it is not involved in military operations. Analysts believe the company may challenge this designation in U.S. courts. Similarly, shares of Chinese battery manufacturer CATL briefly dropped by over 5% before recovering.
Trump’s return to the White House has raised fears of another trade war with China. His plans to cut taxes, reduce regulations, impose tariffs, and crack down on immigration have also sparked inflation concerns. Analysts warn these policies could increase prices and put more pressure on the Federal Reserve to maintain higher interest rates.
Economist David Rees noted that aggressive fiscal policies might worsen supply shortages, leading to higher prices for goods and services.
Key Market Figures
- Tokyo-Nikkei 225: UP 2% at 40,083.30
- Hong Kong – Hang Seng: DOWN 1.2% at 19,447.58
- Shanghai Composite: UP 0.7% at 3,229.64’
- London FTSE 100: DOWN 0.5% at 8,207.51
Currency and Commodity Prices
- Euro/dollar: $1.0418 (up)
- Pound/dollar: $1.2556 (up)
- Dollar/yen: 157.53 yen (down)
- Brent Crude: $76.16 per barrel (down 0.2%)
Investors are now watching closely for the U.S. jobs report due on Friday, which could provide insight into the Federal Reserve’s next moves on interest rates.
See Also: 7.1-Magnitude Earthquake Strikes Tibet, Death Toll Rising
Content Credit| Oyedepo Oluwafifedoyinsola Precious
Picture Credit | https://theenterpriseworld.com/
