Traders dismiss fresh Trump threats to boost stock rally
Asian Markets Post‑Trump Tariff Surges
Stocks across Asia returned to broad gains after Washington announced a slate of new trade levies, offering a glimpse that nations may settle a deal before the tariffs take effect on August 1.
Trump’s Commerce War Ramps Up
- Over 20 letters were dispatched to governments outlining digits that will apply if accords are not reached by the deadline.
- Key products will face steep charges: copper will see a 50 percent tax, while pharmaceuticals could be hit with 200 percent, and Brazil will be subjected to a 50 percent toll.
- Canada now faces a 35 percent tariff, and the majority of trading partners would receive blanket levies of up to 20 percent, increasing from the existing 10 percent.
Market Reaction
While the initial announcement on April 2 sent markets into turbulence, the latest measures have had less impact. Wall Street’s three main indexes all posted gains on Thursday: the S&P 500 and NASDAQ fresh highs followed FTSE 100 in London.
Asia’s Mixed Performance
Hong Kong lifted over 1 percent, while Shanghai, Singapore, Seoul, Taipei, Manila and Jakarta all posted positive figures. Tokyo, Sydney and Wellington saw modest declines.
Expert Insight
Stephen Innes of SPI Asset Management cautioned that “every letter sent to a trade partner is now a chess move disguised as a slap.” Khoon Goh from ANZ Banking Group predicted “more risk aversion across Asia” and suggested that investors will “pare back positions ahead of the weekend” to avoid potential whiplash next week.
Key Market Figures at 02:30 GMT
- Nikkei 225: –0.1 percent at 39,593.84 (Break)
- Hang Seng Index: +1.6 percent at 24,413.74
- Shanghai Composite: +0.6 percent at 3,530.11
- Euro/dollar: –0.1 percent at $1.1684 (from $1.1698)
- Pound/dollar: –0.1 percent at $1.3567 (from $1.3576)
- Dollar/yen: +0.5 percent at 146.74 (146.19)
- Euro/pound: –0.1 percent at 86.12 (pence (from 86.16))
- WTI Crude: +0.8 percent at $67.08 per barrel
- Brent North Sea: +0.7 percent at $69.09 per barrel
- Dow Jones: +0.4 percent at 44,650.64 (Closing)
- FTSE 100: +1.2 percent at 8,975.66 (Closing)
