After days of panic and plunges, Asian markets roared back to life on Thursday following a surprise move by U.S. President Donald Trump to pause some of the harshest tariff measures. His announcement offered a much-needed breather to rattled investors and triggered a global equity rally that echoed across trading floors from Tokyo to Jakarta.
Trump’s decision to delay for 90 days the wide-ranging tariffs announced just last week brought a wave of optimism. Markets had been teetering after fears of a full-blown trade war with multiple U.S. partners sent shockwaves through the financial system.
The delay comes as Trump acknowledged investors were getting “yippy” — a sports term he used to describe a loss of confidence — as Wall Street crumbled and even U.S. Treasuries, usually a safe haven, showed signs of strain.
However, China didn’t get a pass. Trump escalated pressure on Beijing, hiking tariffs to a steep 125 percent in retaliation for what he called the country’s “lack of respect” for global markets.
READ ALSO: Trump Escalates Tariff War with China, Offers 90-Day Reprieve to Other Nations
Despite this escalation, Chinese stocks remained resilient. The Shanghai Composite added over 1%, and Hong Kong’s Hang Seng soared more than 4%, building on its dramatic rebound after Monday’s 13% nosedive — the worst since the 1997 Asian financial crisis.
The overall market reaction was euphoric. Tokyo’s Nikkei skyrocketed more than 8%, Seoul and Singapore climbed over 5%, and Sydney and Jakarta each surged more than 4%. Taiwan’s market posted a record-breaking 9.3% gain, a dramatic turnaround from its historic 9.7% plunge just days earlier.
Vietnam, which was facing some of the steepest tariffs under the original plan, saw its market jump 6.5%. Manila and Wellington also closed sharply higher. The rally was broad and decisive, with technology stocks leading the charge.
Japanese tech giants like Sony, Sharp, Panasonic, and SoftBank all saw double-digit gains, while Apple suppliers surged — AAC Technologies in Hong Kong surged 23%, and Hon Hai in Taiwan added nearly 10%.
“Asia markets are flipping the switch — from fear to euphoria — as Trump throws a 90-day lifeline,” said Stephen Innes of SPI Asset Management. “We just witnessed one of the all-time bouncebacks.”
Investors are also betting that Beijing may roll out fresh economic stimulus to cushion the blow from the new tariffs. Consumer price data showing a continued decline added fuel to those hopes, opening the door for potential central bank or fiscal policy support.
Meanwhile, U.S. bond markets found some relief. Yields dipped slightly after a strong $38 billion Treasury note auction, signaling that investor confidence — though shaken — may not be completely broken.
However, Trump’s trade policy continues to complicate matters for the U.S. Federal Reserve. Minutes from the Fed’s March meeting revealed officials were increasingly worried about the breadth and unpredictability of the tariffs. They acknowledged the challenge of balancing inflation risks — exacerbated by tariffs — against the potential drag on economic growth and employment.
Elsewhere, oil prices took a small step back after a strong 4% rebound the previous day, though overall sentiment remains cautious due to global growth concerns. Gold gained around 2%, and even bitcoin enjoyed a solid 6% jump amid the renewed appetite for risk.
What’s your take?
Are you buying the bounce or bracing for more volatility? Let’s talk in the comments.
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