Asian stocks rebound after Trump’s tariff pause: Nikkei, Hang Seng surge up to 2%

(Originally posted on : Invezz )

Asian stock markets surged on Tuesday, rebounding from the previous session’s losses despite broadly negative cues from Wall Street overnight.

Investor sentiment improved after US President Donald Trump announced a delay in the planned tariffs on Mexico and Canada following successful negotiations with the respective governments.

The decision helped alleviate concerns that new trade restrictions could fuel inflationary pressures and lead the US Federal Reserve to keep interest rate cuts on hold for longer.

Japan’s Nikkei 225 Surges Past 39,100

Japan’s Nikkei 225 index saw a sharp rebound on Tuesday, recovering from steep losses in the prior session.

The index climbed above 39,100, supported by broad-based gains across major sectors, particularly technology and index heavyweights.

By the end of the morning session, the Nikkei 225 was up 620.32 points, or 1.61%, to 39,140.41, after reaching an intraday high of 39,192.51. This recovery came after the index fell sharply on Monday, reflecting previous concerns over global trade tensions.

Key stocks contributed to the rally, with SoftBank Group rising over 1% and Fast Retailing (Uniqlo operator) edging up 0.2%. The automobile sector also saw strong gains, with Honda up more than 2% and Toyota advancing nearly 3%.

Hang Seng surges over 2%

Hong Kong stocks surged on Tuesday, driven by optimism surrounding trade negotiations after US President Donald Trump indicated he would speak with China.

The Hang Seng Index rose by 2.9%, marking its biggest daily gain since October 18, while the Hang Seng Tech Index climbed 5%.

Investors were particularly upbeat about technology and AI-related stocks, with notable gains in companies like Xiaomi, JD.com, Alibaba, and Tencent.

Electric vehicle makers also saw strong performance, with Li Auto and Geely Automobile both registering over 8% gains.

Markets in China were closed and will resume trading on Wednesday.

Other regional markets

The Australian stock market traded notably higher, reversing Monday’s losses as the benchmark S&P/ASX 200 index moved above the 8,400 level.

By mid-session, the S&P/ASX 200 index had gained 36.50 points, or 0.44%, reaching 8,415.90, after hitting an intraday high of 8,446.80.

The KOSPI index rose by 44.94 points (1.83%) to 2,498.89, buoyed by strong performances in key stocks.

Samsung Electronics led the charge, soaring by 4.12%, while SK Hynix, LG Energy Solution, and Hyundai Motor also saw gains, rising by 0.28%, 0.3%, and 1.5%, respectively.

Wall Street ended lower on Monday

Stocks initially dropped sharply on Monday, with the Nasdaq plummeting 2.5% early in the session.

However, the market rebounded over the day, with the Nasdaq finishing down 1.2% at 19,391.96, while the S&P 500 fell 0.8% to 5,994.57.

The Dow Jones index also declined by 0.3% to 44,421.91.

The recovery followed President Trump’s announcement of a one-month pause on newly implemented tariffs on Mexico.

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