Financial markets in the Asia-Pacific region have jumped hours after Donald Trump announced a 90-day pause on most 'reciprocal' tariffs.
Japan's Nikkei 225 index soared by more than 8%, with one expert saying the region is 'breathing a massive sigh of relief.' In the US, Wall Street made historic gains following news of the reprieve, after days of economic turmoil
However, higher tariffs rates on China remain, with Trump hitting Beijing with an even higher levy of 125%. It came hours after China announced an 84% tariff on goods imported from the US. However a "universal 10%" levy will be in place for most countries.
Stocks in the US started soaring immediately after Trump announced a pause on his reciprocal tariffs--just the kind of news investors had been eagerly anticipating. US stocks experienced one of their strongest days ever, fuelled by a surge of optimism on Wall Street.
The S&P 500 jumped 9.5% on Thursday, a gain that would typically represent a solid year for the market. The Nasdaq Composite jumped 12 percent, gaining 1857.06 points to reach 17,124.97. Meanwhile, Wall Street’s other major indexes also saw strong gains, with the Dow Jones climbing 7.9%.
US stock markets saw broad gains , with 98% of S&P 500 companies posting increases. Airlines and other travel-related stocks led the surge, benefiting from optimism that consumers are confident enough to travel for business or leisure.
Tesla stocks soared by 41.76 points, marking an 18.82% rise to close at 263.62. Intel advanced 3.08 points, up 16.96% to finish at 21.20. NVIDIA leapt 15.58 points, gaining 16.18% to settle at 111.88. Apple added 17.51 points, a 10.15% increase, ending the session at 189.93, while Amazon rose 16.77 points, climbing 9.83% to close at 187.43.
On Wednesday, markets were slipping amid concerns that Trump's trade war might push the global economy toward a recession. But everything changed when a social media post delivered the long-hoped-for update, sparking a powerful rally across global markets.
Delta Air Lines jumped 23.4%, despite having earlier withdrawn its 2025 financial guidance due to trade tensions disrupting forecasts for consumer and business spending, which has impacted travel bookings.
Stocks in Asia rebounded strongly on Thursday after Trump’s stunning reversal on sweeping reciprocal tariffs. In Japan, the Nikkei 225 was up 7.2% to 33,999.33, while in Seoul the Kospi was up over 5%. In Australia the ASX 200 jumped more than 6%.
Following other markets in the region, Taiwan stocks surged 9.2% in early trading on Thursday, tracking global markets higher, after US President Trump suspended his highest trade tariffs, except for those on China.
The Taiex index jumped 1,590.79 points to 18,982.55 in the first five minutes of trading, as Taiwanese tech giants TSMC soared 10% and Foxconn 9.8%.