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Tariffs

Asian Markets Surge as Trump Delays Tariff Hike Amid Trade Talks

Strategic Insights

— 2 min read

Asian shares mostly rose on Tuesday after President Donald Trump delayed raising tariffs on China for another 90 days, giving more time for trade talks to avoid a possible showdown between the world's two major economies. The Tokyo-based Nikkei 225 surged 2.2% to a record high, while Toyota Motor Corp.'s shares jumped nearly 3% after the U.S. confirmed that tariffs on imports from Japan would be taxed at 15% and not stacked on top of existing duties.

Key Takeaways:

  • The Tokyo-based Nikkei 225 jumped 2.2% to 42,718.17, its highest record, after Trump delayed raising tariffs on China for another 90 days, easing tensions in the trade war.
  • Toyota Motor Corp.'s shares surged nearly 3%, with other heavyweight shares also seeing significant gains after the U.S. confirmed that tariffs on imports from Japan would be taxed at 15% and not stacked on top of existing duties.
  • The Hang Seng Index in Hong Kong rose 0.3% to 24,979.55, while the Shanghai Composite Index climbed 0.5% to 3,665.92, illustrating a divergent trend between the two Chinese indices.
  • The Federal Reserve, led by Chair Jerome Powell, has been cautious about cutting interest rates due to concerns about inflation, which has remained above 2% in recent months.
  • Stephen Innes, a commentary from SPI Asset Management, noted that the tariff extension was not about goodwill, but rather an attempt to keep "oxygen in the room for deals that matter".

Statistics:

  • The Nikkei 225 jumped 2.2% to 42,718.17, exceeding its previous record.
  • Toyota Motor Corp.'s shares surged nearly 3%, outperforming other heavyweight stock.
  • The Hang Seng Index rose 0.3% to 24,979.55, while the Shanghai Composite Index climbed 0.5% to 3,665.92.
  • U.S. inflation is expected to accelerate to 2.8% in July, following a 2.7% increase in June.
  • The S&P 500 dipped 0.3% to 6,373.45, while the Dow Jones Industrial Average dropped 0.5% to 43,975.09.
  • In inflation-adjusted terms, the U.S. price index rose 0.6% in June, compared to a 2.6% increase in May.

Sources:

  • Asian shares mostly advanced after President Donald Trump delayed raising tariffs on China for another 90 days (The Associated Press)
  • Tokyo's benchmark Nikkei 225 jumped 2.2% to 42,718.17 (The Associated Press)
  • Toyota Motor Corp.'s shares surged nearly 3% (The Associated Press)
  • The Hang Seng Index in Hong Kong rose 0.3% to 24,979.55 (The Associated Press)
  • The Shanghai Composite Index climbed 0.5% to 3,665.92 (The Associated Press)

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