Asian stocks posted their biggest jump in more than two years as global financial markets rebounded after US President Donald Trump paused most of his sweeping reciprocal tariffs. Treasuries rallied after a tumultuous session. Shares across the region gained Thursday after the S&P 500 had its best day since the global financial crisis. While equity-index futures for Europe surged more than 7%, contracts for US stocks declined, indicating markets are still in a flux. Yields on 10-year Treasuries fell after a 34 basis point surge in the past three days spurred worries about the stability of the world’s biggest debt market. Metals halted the longest run of losses in 25 years. Chinese stocks advanced on expectations for more stimulus after Trump increased levies on the country to 125%. The country’s top leaders are poised to meet Thursday to discuss additional economic measures. Moves in Asia extended the volatile trading across markets over the past week as investors grappled with the fallout from Trump’s sweeping tariffs and a sudden reversal. Billionaire investors had condemned the levies, economists predicted a recession for the US economy and strategists trimmed their forecasts for stocks as the president sought to remake the world trading order. Wild swings in the US bond market caught Trump’s attention as he pivoted. “Investors across Asia and beyond are breathing a sigh of relief,” said Frederic Neumann, chief Asia economist at HSBC Holdings Plc. “The postponement of reciprocal tariffs by the US allows more time for negotiations. For export-centered Asian economies this is especially important, given the growth impact steep US tariffs would have had.” After $10 trillion was wiped off global equity markets and US Treasuries plunged, Trump announced a 90-day pause on the so-called reciprocal tariffs that hit dozens of trading partners after midnight. However, he raised duties on China to 125%. That came after the Asian nation retaliated and said it will raise levies on US goods to 84%. Countries that were hit with the higher, reciprocal duties that went into effect Wednesday will now be taxed at the earlier 10% baseline rate applied to other nations, with the exception of China, according to a White House official. While Chinese equities rallied on stimulus expectations, the onshore yuan fell to the weakest level since 2007. Bets on monetary easing measures by the People’s Bank of China to support the economy also weighed on the currency. The recovery in US stocks came after days of mounting market stress in everything from money markets to credit spreads and a chorus of pleas from Trump’s allies that he pause the implementation of his tariff program. “We think Trump blinked, and the probability of a ‘contained damage’ scenario is rising,” said Homin Lee, a senior macro strategist at Lombard Odier Ltd. in Singapore. “We expect Europe and Asia to echo the US relief rally. The punitive tariff rate on China is mostly symbolic at this point.” Less than an hour before Trump’s remarks, a $39 billion sale of 10-year notes drew good demand — despite concern by some in the market that his policies might deter foreign buyers. That followed a tepid reaction to a sale of three-year notes on Tuesday, and paints a rosier backdrop for Thursday’s 30-year bond auction. Trump called the world’s biggest debt market a thing of beauty as his about-face on trade policy sparked huge swings in bonds. Wednesday’s declines for short-dated Treasuries, a popular place where investors parked capital during market turmoil, were amplified as investors pivoted toward the equity rebound. Bonds from Australia to Japan swung Thursday in the wake of a chaotic day in the US Treasuries market, forcing traders to confront the possibility that volatility from trade war jitters is only just beginning. “This period of instability will continue for the next couple of weeks,” said Tsutomu Soma, a bond trader at Monex Inc. in Tokyo. “No one knows what shape these tariffs are ultimately going to take and everyone’s looking at US yields to trade — so brace for more chaos ahead.” In commodities, oil returned to losses as investors grappled with abrupt policy shifts. Gold edged higher. US After Hous STZ -2.9% on earnings and it will divest some wine brands; X -11.7% lower on Reuters report that Trump pours cold water on merger; PSMT +1.4% a bit higher on earnings.
Nikkei +8.53% Hang Seng +2.80% CSI +1.35% Shanghai +1.24% Shenzen +3.05%
Eur$ 1.0982 CNH 7.3563 CNY 7.3427 JPY 146.63 GBP 1.2858 CHF 0.8535 RUB 85.9628 TRY 37.9731 WTI$ 61.80 -0.88% Gold 3,127 +1.45% BTC 82,110 -1.27% ETH 1,622 -3.06%
S&P -0.39% Nasdaq -0.80% EuroStoxx +7.56% FTSE +5.27% Dax +7.44% SMI +6.85 CAC
Macro :
- Onshore Yuan Hovers Near Weakest Level Since 2007: Inside China
- Summers (bbg editorialist) Says the US is Far From Being ‘Out of the Woods’
- Germany’s New Government to Use Legacy Bank Levy Funds for SMEs
- Germany’s New Government to Use Legacy Bank Levy Funds for SMEs
- Goldman Warns Oil Crash Could Push Saudi Deficit to $67 Billion
- Exclusive: Fed's Barkin says tariff price hikes could start by June
- China March Consumer Prices -0.1% Y/y; Below Estimate
- Trump Says He Can’t Imagine Further Increasing China Tariffs
- Trump Says He’ll Look Into Tariff Exemptions for Some Companies
- Finland Made €1.45b in 2024 Revenue From Corporate Holdings
Keep an eye on :
- AIR FP : Airbus March Aircraft Deliveries 71 Jets
Keep an eye on :
- AIR FP : Airbus March Aircraft Deliveries 71 Jets
- AGR LN : Primary Health Properties Still Considering Options for Assura
- AAPL US : Apple’s iPhone Cost Could Rise 90% If It’s Made in US, BofA Says
- BPM IM : Banco BPM Set to Take Over Anima After Reaching 90% of Capital
- BARN SW : Barry Callebaut 1H Sales Beat Estimates
- BAVA DC : Bavarian Nordic Fails to Get Backing for Executive Pay Hike
- BX US : Blackstone Hires Former Pfizer Scientist to Find Blockbusters
- COTN SW : Comet 1Q Net Sales CHF111.2M Vs. CHF80.9M Y/y
- STZ US : Constellation to Sell Mainstream Wine Brands to The Wine Group
- DOCM SM : DocMorris AG Sees FY Adjusted Ebitda Loss CHF35M to CHF55M
- EBK GY : EnBW Unit Ordered to Halt French Wind Farm on Eagle Death: AFP Uni
- EBK GY : EnBW Unit Ordered to Halt French Wind Farm on Eagle Death: AFP Uni
- EPR NO : Europris 1Q Revenue Misses Estimates
- FAGR BB : Fagron 1Q Revenue Beats Estimates
- GIVN SW : Givaudan 1Q Sales Beat Estimates
- GRF SM : Grifols Holder Brandes Reports 16.4% Stake in Amended 13G
- IOS GY : Italy Seeks $1.3b From Ion in Tax Evasion Probe: Reuters
- KER FP : QIA in Talks on €1.3b Kering Milan Property Investment: Corriere
- 7201 JP : Nissan Taps SoftBank-Backed Startup Wayve for AI Driving System
- NDX1 GY : Nordex Prelim 1Q Orders 2.18 GW
- ORSTED DC : Ørsted urges Europe to act to avert wind energy ‘downward spiral’
- PTEC LN : Flutter Clears Regulatory Hurdles to Buy Playtech’s Italian Unit
- 1913 HK : Prada cuts Versace purchase price by $200mn after Trump tariffs +4.5% in HK Trading
- RSL2 GY :
- RCO FP : Rémy Cointreau CEO Eric Vallat to Step Down
- 9984 JP : Nissan Taps SoftBank-Backed Startup Wayve for AI Driving System
- 7974 JP : Nintendo’s Pivotal Switch 2 Launch Boosted by Trump Tariff Pause
- 3382 JP : Seven & i Jumps Most in Month on Buyback Plan, Broader Buying
- TSCO LN : *TESCO FY ADJ. OPER PROFIT GBP3.13B, EST. GBP3.07B
- TSLA US : Doge’s job cuts at US traffic safety regulator hit self-drive experts, affecting staff overseeing tech on which he has staked Tesla’s future - FT
- TKA GY : Thyssenkrupp Said to Mull Exit Options of Materials Trading
- 8TRA GY : Traton Prelim 1Q Adjusted Operating Margin Misses Estimates
- 2330 TT : TSMC Sales Beat Estimates as AI Demand Soars Ahead of US Tariffs
- X US : US Steel Drops, Trump Says He Doesn’t Want Sale to Japanese Firm
- VOW GY : VW’s Operating Profit Fell Almost 40% Ahead of US Tariffs (1)