On April 10, 2025, US President Trump announced a 90-day delay in imposing “equal tariffs” on multiple countries, triggering the largest surge in Wall Street since the 2008 financial crisis. On Thursday, the Nikkei Index surged more than 7%, while the Taiwan Stock Exchange, South Korean Stock Market, and Australian Stock Market all saw gains, leading to a comprehensive rebound in the Asia-Pacific markets.
However, under the shadow of the US-China trade war, the performance of the Chinese and Hong Kong stock markets lagged behind other Asia-Pacific regions. The Shanghai Composite Index rose by only about 1.5%, while the Hong Kong Hang Seng Index climbed 4%. Compared to the strong performance of markets in Japan, South Korea, and Taiwan, the reaction from the Chinese and Hong Kong markets was more conservative, indicating that investors are still adopting a wait-and-see approach towards these markets.
On Thursday, the Nikkei 225 Index opened and steadily climbed, reaching a peak increase of nearly 9% at 34,568.46 points, while the TOPIX Index also rose by over 8% to 2,545.17.
Other Asia-Pacific markets also showed synchronized gains. The South Korean KOSPI Index surged by 5%, and the KOSDAQ, comprising mainly small-cap stocks, rose by 4.61%. The Australian S&P/ASX 200 Index also experienced a 6% increase.
The Taiwan Stock Market skyrocketed by over 9.3% upon opening, reaching 19,011.94 points.
In the cryptocurrency market, Bitcoin surged by 7.7% to $82,967, while XRP and Solana experienced increases of over 11%.
The previous night, Wall Street witnessed the largest single-day buying spree since the 2008 financial crisis. The S&P 500 Index soared by 9.52% to close at 5,456.90 points, marking the third-largest single-day increase post-war.
The Dow Jones Industrial Average rose by 7.87% to 40,608.45 points, achieving its largest gain since March 2020, while the Nasdaq Composite Index surged by 12.16% to close at 17,124.97 points, marking its biggest one-day increase since 2001.
The key factor that triggered the market rebound was President Trump’s announcement of a 90-day suspension of “equal tariffs” on most countries except China.
Trump also seemed to acknowledge the near-panic market reaction since April 2, which influenced his decision. He stated that the market response had been “a bit overblown” and emphasized the importance of flexibility.
The White House indicated that the 10% base tariffs on almost all imported goods would still be retained, and there would be no changes to the current tariffs on automobiles, steel, and aluminum.
While temporarily halting further tariff increases on global trade partners, the Trump administration continues to exert pressure on the Chinese Communist Party.
US Treasury Secretary Scott Bessent stated that the withdrawal of equal tariffs was actually a pre-set strategy, as Trump used tariffs to create the greatest negotiating leverage, bringing countries back to the negotiating table and containing the CCP.
“This is his consistent strategy,” Bessent said. “One could even say he deliberately put China (CCP) in an unfavorable position.”
As the second-largest source of imports for the US, China’s imported goods would face a tariff increase from 104% to 125% effective from midnight on April 9, further escalating the US-China trade war. Over the past week, both sides have engaged in multiple rounds of tariff retaliation.
Due to the escalating US-China trade tensions, the performance of the Chinese and Hong Kong stock markets has been relatively weak.
The Shanghai Composite Index rose by only about 1.5%, while the Hong Kong Hang Seng Index climbed 4%. Compared to the strong performance of markets in Japan, South Korea, and Taiwan, the reaction in the Chinese and Hong Kong markets has been relatively conservative.
Former US Assistant Secretary of State for East Asian and Pacific Affairs and Vice President of the Asia Society Policy Institute, Daniel Russel, stated, “China is unlikely to change its strategy… Beijing believes that concessions would be seen as weakness, hence any concession would only invite more pressure.”
Trump mentioned that it is possible for the US and China to reach an agreement. However, US officials stated that negotiations with other countries would take priority at the moment.
“China also wants to reach an agreement,” Trump said. “They just don’t quite know how to do it yet.”
Bessent is responsible for a series of negotiations with various countries, covering issues such as foreign aid, military cooperation, and economic matters. The White House reported that Trump had conversations with leaders from Japan and South Korea. A delegation from Vietnam also met with US officials on Wednesday to discuss trade matters.
Bessent declined to reveal how long negotiations with over 75 countries would take.
Analytical experts indicated that the sharp increase in stock prices may not fully offset losses. Several surveys have shown that business investments and household spending have slowed down due to concerns about the impact of tariffs.
Following Trump’s announcement to postpone the implementation of equal tariffs, Goldman Sachs lowered the probability of a US economic recession from 65% to 45%. However, they pointed out that the remaining tariff measures could still lead to an overall 15% increase in US tariffs.