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Tariffs

Asian Shares Rise on Optimism of Trade Deals and Tariff Agreement

Strategic Insights

— 1 min read

Asian markets experienced a sixth consecutive session of growth, with the Shanghai Composite Index, Hong Kong's Hang Seng index, and South Korea's Kospi all rising by varying percentages. The optimism is driven by the recent trade deal between the US and Japan, which has lowered proposed tariffs on Japanese imports coming to the US. This development has led traders to anticipate more trade deals, with Europe and India being potential targets for such agreements. The mood in the market is one of cautious optimism, with experts citing the ink on the US-Japan tariff truce as a sign that the storm has passed.

Key Takeaways:

  • The Shanghai Composite Index added 0.4% to 3,595.58, while the Hong Kong's Hang Seng index rose 0.4% to 25,631.08.
  • South Korea's Kospi climbed 0.9% to 3,211.21, driven by a 0.6% rise in the country's second-quarter GDP.
  • The S&P 500 added 0.8% to its all-time high, with the Dow Jones Industrial Average rallying 507 points, or 1.1%, and the Nasdaq composite climbing 0.6% to hit its own record.
  • The US-Japan tariff truce has lowered proposed tariffs on Japanese imports coming to the US, with a 15% tax being placed on such imports, lower than the 25% rate earlier proposed.
  • The US economy has seemed to hold up well despite the pressures of tariffs, with some experts suggesting that the tariffs may be having less of an effect than expected on US household prices.
  • Stephen Innes of SPI Asset Management noted that traders are scanning the horizon for the next deal to surface, with Europe, India, and China being potential targets.

Statistics:

  • 2-year high: Nikkei 225 surged nearly 2% to 41,983.50
  • 0.4% rise: Shanghai Composite Index added to 3,595.58
  • 0.4% rise: Hong Kong's Hang Seng index rose to 25,631.08
  • 0.9% rise: South Korea's Kospi climbed to 3,211.21
  • 0.6% rise: South Korea's second-quarter GDP
  • $65.47: US benchmark crude oil
  • $68.72: Brent crude, the international standard
  • $146.03: US dollar fell against the Japanese yen
  • $1.1781: euro rose to

Sources:

  • AP Business Writer Stan Choe
  • Stephen Innes of SPI Asset Management
  • The Associated Press
  • South Korea Financial Markets

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