On Thursday, global markets experienced a significant upswing, highlighted by a more than 9% surge in Japan’s benchmark index. This rally was largely attributed to US President Donald Trump’s announcement to temporarily suspend his proposed tariff increases for 90 days, although China was notably excluded from this pause.
During the early trading session, Germany’s DAX saw an initial increase of over 8%.
The index rose by 7.5%, reaching 21,141.53, while the CAC 40 in Paris increased by 7.2%, climbing to 7,360.23.
The FTSE 100 in Britain experienced a notable increase, climbing 5.4% to 8,090.02.
US futures experienced a slight decline while oil prices also decreased.
Chinese shares experienced more tempered gains as both sides implemented another round of tariff increases on each other’s exports.
The S&P 500 futures declined 0.4%, while the Dow Jones Industrial Average futures slipped 0.2%.
Analysts anticipated a global resurgence following Wednesday’s remarkable day for US stocks, as investors expressed relief over Mr. Trump’s decision.
On Thursday, Japan’s benchmark Nikkei 225 surged 9.1%, closing at 34,609.00. The index had a notable upward trajectory right from the start of trading.
Australia’s S&P/ASX 200 experienced a significant increase of 4.5%, reaching a new level of 7,709.60.
The Kospi index in South Korea saw a significant increase of 6.6%, reaching a value of 2,445.06.
The Hang Seng Index in Hong Kong experienced a notable increase, rising by 2.4% to 20,750.65.
The Shanghai Composite experienced an increase of 1.2%, closing at 3,223.64.
In a recent commentary, Stephen Innes, managing partner at SPI Asset Management, noted that investors have transitioned “from fear to euphoria.”
“It’s now a manageable risk, particularly as the global recession tail bets are unwound, and a significant number of Asia’s exporters are breathing a massive sigh of relief,” he stated, alluding to the tariffs on China that remain under Mr. Trump.
On Wall Street, the S&P 500 experienced a remarkable surge of 9.5%, a figure that would typically be regarded as a strong annual performance for the market.
Earlier in the day, concerns regarding Mr. Trump’s trade war led to a decline, raising fears that it could pull the global economy into a recession.
Then, the announcement arrived—words that investors across the globe had eagerly anticipated.
“I have authorized a 90-day pause,” Mr. Trump stated, noting that over 75 countries are currently engaged in trade negotiations and are refraining from retaliating against his recent tariff increases.
Treasury Secretary Scott Bessent informed reporters that President Trump has decided to pause his controversial “reciprocal” tariffs on most of the nation’s largest trading partners while still upholding a 10% tariff on nearly all global imports.