Asian stocks rise as Japanese markets post fresh gains
What’s happening :- Asian stocks recorded gains this morning, as investors continued to assess US President Donald Trump’s tariff moves.
What happened :- Japan’s equity markets led the gains, after Trump said he is considering a pause in the 25% auto tariffs.
However, the gains were limited as the US Commerce Department announced plans to investigate semiconductor and pharmaceutical imports.
Why it matters :- US President Donald Trump has imposed 145% tariffs for China and 10% for most of its trading partners, resulting in significant volatility in the financial markets.
Asian stocks rise as Japanese markets post gains for a second session.
However, the latest announcement related to a pause in tariffs lent some support to sentiment. The White House announced an exemption on smartphones and computers, while Trump said that tariffs could be imposed at a later date.
The US President said that he would announce the decision on semiconductors next week and on smartphones soon after that. He added that his administration is exploring a pause in auto tariffs.
Asian stocks rise again
Auto-related stocks led the rally in Japan, with shares of Suzuki Motor, Honda Motor and Toyota Motor recording sharp gains. Financials, industrials and consumer-related stocks also notched gains during the session.
Data released on Monday showed that Japan’s industrial production grew by 2.3% in February, representing a slowdown from the 2.5% recorded in the previous month. However, investor responded positively as this marked another recovery after three straight months of declines.
China’s trade surplus widened to $102.64 billion in March, from $58.65 billion in the year-ago period, topping market estimates of $77 billion. The sharp rise was driven by a 12.4% year-over-year jump in exports, exceeding market expectations of a 4.4% rise.
Asian stocks
Japan’s Nikkei 225 surged around 1.2% to 34,385.44 this morning, gaining for the second session in a row. Hong Kong’s Hang Seng Index climbed about 0.3%. However, China’s markets bucked the overall market trend, with Shanghai Composite Index shedding 0.36% to reach 3,251.13.
What to watch: Investors will continue monitoring tariff-related announcements from the US. Investors will also watch the upcoming trade talks between the US and Japan, which are projected to provide direction to the market.
China’s President Xi Jinping’s first overseas trip of the year will also remain in focus, as he landed in Vietnam on Monday. Xi Jinping is also scheduled to visit Malaysia and Cambodia.