AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Asian markets show mixed trends amid fading tariff optimism
- US-China trade war uncertainty dampens investor sentiment
- Key Asian indices remain volatile with marginal movements
Asian equity markets saw modest movement on Thursday, reflecting investor caution as initial optimism surrounding a potential reduction in US tariffs on Chinese goods began to fade. The excitement was sparked by reports that US President Donald Trump was contemplating easing the 145% tariff burden imposed on imports from China. However, that positive sentiment quickly lost steam, leading to subdued trading across major Asian indices.
By mid-morning, Japan’s Nikkei 225 Index had gained 0.8%, indicating some resilience among Japanese equities. Key players on the Tokyo exchange saw measured gains amid hopes of better trade terms. Meanwhile, China’s CSI 300 Index, which includes top-performing stocks from the Shanghai and Shenzhen exchanges, inched up just 0.1%. The muted performance in mainland China suggested skepticism about the likelihood of swift policy changes or breakthroughs in ongoing trade negotiations.
South Korea’s KOSPI Index showed a slight dip, highlighting investor caution amid uncertain economic signals. A regional composite gauge for Asia-Pacific stocks fluctuated between narrow gains and losses, indicating market participants were still weighing the implications of global trade tensions on growth prospects.
The earlier boost in global stocks was largely driven by expectations of de-escalation in the long-standing US-China trade dispute. However, market sentiment was quickly dampened when Treasury Secretary Scott Bessent raised concerns about the timing of any resolution. His remarks added a layer of doubt, leading global investors to recalibrate their positions and reduce risk exposure.
In the United States, the broader S&P 500 Index had managed a gain of 1.7% before the sentiment shifted, while the tech-heavy Nasdaq 100 rose by 2.3%. Back in currency markets, the Japanese yen regained strength after two consecutive days of losses, suggesting a return to safe-haven assets. Concurrently, the US dollar weakened in early Asian trading, further signaling market unease.
As investors continue to navigate a highly fluid macroeconomic landscape, the short-term outlook for Asian equities remains tied to geopolitical developments, particularly those surrounding US-China trade dynamics. Corporate performance across sectors such as technology, manufacturing, and finance—especially companies like SoftBank Group (TYO:9984), Samsung Electronics (KRX:005930), and Alibaba Group (NYSE:BABA)—could be influenced by the evolving trade narrative.
For now, markets appear to be in a holding pattern, with sentiment sensitive to any policy updates or diplomatic cues that could shift the trajectory of international trade relations.
