BANGKOK – Asian stock markets experienced mostly upward movements on Thursday, influenced by a positive shift in Wall Street following President Donald Trump’s easing of some tariff increases. U.S. futures remained relatively stable as noteworthy gains were observed in Japan and China.
President Trump’s initiative to provide a temporary one-month exemption on 25% tariffs imposed on Mexican and Canadian automobile imports by U.S. automakers has fueled optimism that a severe trade conflict may be avoided. This alleviated fears of economic disruptions and rising inflation.
In Japan, the Nikkei 225 index saw a rise of 0.8% reaching 37,704.93 points. Stocks related to Japanese car manufacturers soared during U.S. trading; however, Toyota Motor Corp.’s shares declined by 1% in Tokyo. In contrast, Honda Motor Corp. experienced a 2% increase, and Nissan Motor Co. advanced by 1.1%.
In Hong Kong, the Hang Seng index surged by 3.3% to 24,362.68. This came after a report from the Chinese government, during their annual legislative session, showed a strong determination to boost consumer spending and internal demand. The Shanghai Composite index also saw an increase, rising by 1.2% to 3,381.10.
Elsewhere in Asia, South Korea’s Kospi index climbed 0.7% to 2,576.16, contrasting with Australia’s S&P/ASX 200, which fell 0.6% to 8,094.70. Meanwhile, Taiwan’s Taiex dropped 0.7%, and Thailand’s SET index decreased by 0.6%.
The U.S. markets experienced gains on Wednesday, largely driven by rising stocks of Ford Motor and General Motors. The S&P 500 rose by 1.1% to 5,842.63, the Dow Jones Industrial Average improved by 1.3% to 43,006.59, and the Nasdaq composite increased by 1.6%, closing at 18,552.73.
President Trump’s decision came after engaging with automakers Ford, General Motors, and Stellantis, leading to significant stock spikes for Ford and GM, both surging by more than 5%. The market broadly rallied as a result.
There has been concern that such tariffs might not only reduce corporate profits but also lead to an increase in the prices of cars and other consumer goods, which could further challenge U.S. households already grappling with elevated inflation. Additionally, it is hoped that Trump’s tariff threats are more strategic negotiation tools which may result in less detrimental decisions for the economy and global trade if he reaches satisfying agreements.
Notably, Trump did not rescind all tariffs featuring the United States’ primary trade partners, including those on China. He stated additional tariffs are planned to take effect on April 2 during his congressional address Tuesday night.
Recently, markets have been jittery following higher tariffs announced on Monday, which signaled a closure to negotiations and led to a dip in U.S. stocks on Tuesday. Furthermore, the threat of tariffs has already impacted U.S. households and businesses negatively, resulting in declining consumer confidence due to fears of increased inflation.
Reports released on Wednesday offered mixed signals regarding the U.S. economy. According to a report from ADP, job recruitment by U.S. employers experienced a sharp reduction last month, serving as a potential cautionary indicator leading up to the Labor Department’s upcoming employment report scheduled for release on Friday. Meanwhile, another survey suggested that growth in sectors such as finance and real estate was better than anticipated, although businesses voiced concerns over “chaos” and uncertainty from tariffs.
A series of unexpectedly weak economic reports from the U.S. has stirred apprehension about a potential worst-case scenario known as “stagflation,” where stagnation coincides with high inflation, a rare situation. While the U.S. economy ended the previous year at a strong pace, any slowdown might prompt the Federal Reserve to cut interest rates to stimulate growth, though this could also drive inflation higher.
In the early hours of Thursday, U.S. benchmark crude oil increased by 58 cents, priced at $66.89 per barrel, and Brent crude, the global benchmark, rose by 56 cents to $69.86 per barrel.
Additionally, currency markets experienced shifts as the U.S. dollar dropped to 148.51 Japanese yen compared to 148.89 yen previously, while the euro appreciated to $1.0803 from $1.0790.
