Trump tariff pause boosts Asia stocks with Nikkie up 9%, China gains despite tariff hike

Asia-Pacific stocks advance on Thursday as broader market sentiment improved following US President Trump’s announcement of a 90-day pause on tariffs for all countries except China, easing concerns over global trade wars. However, caution remains as President Trump raised tariffs on Chinese imports to 125%. Investors also weighed China’s latest inflation data as trade tensions between Beijing and Washington continued to escalate. US Treasury Secretary Scott Bessent plans to meet officials from Japan, Vietnam, India, and South Korea soon. Japan ( NKY:IND ) rose 9.04% to above 34,000 on Thursday, erasing losses from earlier this week, after US President Donald Trump unexpectedly lowered new tariff rates on imports from most US trade partners to 10% for 90 days to allow for trade negotiations. The Japanese yen appreciated past 147 per U.S. dollar on Thursday, continuing to trade within a volatile range as markets responded to shifting global trade dynamics. Producer prices in Japan increased by 4.2% y/y in March 2025, surpassing market estimates of 3.9% and following a marginally revised 4.1% growth in the previous month. Separate data showed, the value of loans in Japan increased 2.8% year-on-year in March 2025, slowing from a 3.1% gain in February which was the highest reading in seven months. Japan will continue pressing the US to review its tariff measures, hoping for relief after President Trump paused some reciprocal tariffs, said Economic Revitalisation Minister Ryosei Akazawa. China ( SHCOMP ) rose 1.35% to climb above 3,200, while the Shenzhen Component jumped 3.2% to 9,840 on Thursday, marking the third consecutive session of gains for mainland equities even as trade tensions with the U.S. intensified, and the offshore yuan depreciated to around 7.36 per dollar, pressured by deepening deflationary concerns. China’s top leaders are scheduled to meet on Thursday to discuss additional stimulus measures in response to steep U.S. tariffs, Bloomberg News reported. Separately, ASEAN members will gather today to address President Trump’s punitive tariffs. ASEAN governments have so far opted for dialogue over retaliation. China’s consumer prices fell by 0.1% year-on-year in March 2025 , missing market expectations of a 0.1% increase and marking the second consecutive month of drop. China’s producer prices dropped by 2.5% y/y in March 2025, steeper than market expectations of a 2.3% drop and February’s 2.2% decrease. While US President Trump announced a 90-day pause on reciprocal tariffs for non-retaliating countries, he increased tariffs on Chinese imports to 125%, following Beijing’s announcement of an 84% retaliatory levy on American goods. In turn, China is preparing countermeasures targeting US companies and looking to strengthen trade, investment, and industrial cooperation with the EU. Separately, amid rising tensions and new tariffs (including 125% on China), China advises against US travel due to economic and security issues. Hong Kong ( HSI ) rose 3.18% to 20,797 in Thursday morning trade, extending gains for a second session. India ( SENSEX ) market closed. Australia ( AS51 ) rose 4.64% to above 7,800 on Thursday, reversing losses from earlier this week. The Australian dollar held above $0.61 on Thursday after surging more than 3% in the previous session. Consumer inflation expectations in Australia rose to 4.2% in April 2025, up from 3.6% in March — the lowest reading in more than four years. In the U.S., on Wednesday, all three major indexes ended higher after President Donald Trump announced a 90-day pause on many of his new tariffs, causing a major market rally. U.S. stock lower on Thursday after the major averages posted a historic rally after tariff relief: Dow -0.12% ; S&P 500 -0.47% ; Nasdaq -0.88% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s March inflation drops for second straight month; issues warning on travel to U.S. Trump issues 90-day pause on most reciprocal tariffs except for China China pledges to ‘fight to the end’ against new U.S. tariffs, escalating the trade dispute Chinese sellers on Amazon mull price hikes or US exit as Trump slaps 125% tariff Japan producer prices rise more than expected to 4.2% in March

Source: Seeking Alpha