As investors await the opening of European markets, Asian-Pacific trading has largely calmed following a volatile Monday, though some regional markets remain under pressure. In Thailand and Indonesia, stocks experienced sharp declines as both markets reopened after holidays. Trading in Jakarta was briefly suspended when the JSX index plummeted over 9%, stabilizing at a 7.5% loss by midday. Thailand’s SET index also dropped 5.7%.
Taiwan’s Taiex index fell 4.4%, driven down by losses in Taiwan Semiconductor Manufacturing Corp. (TSMC), the world’s largest chip maker. TSMC shares saw a 4% decline on Tuesday, extending a 13.5% drop since President Trump’s announcement of his “Liberation Day” tariffs on April 2.
Meanwhile, many other markets in the region showed signs of recovery after a tumultuous day on Wall Street, where stocks surged and plunged in response to President Trump’s threats to escalate tariffs. In a related development, China’s Commerce Ministry announced early Tuesday that it would “fight to the end” and take unspecified countermeasures against the United States to protect its interests, following Trump’s warning of a 50% tariff on Chinese imports.
By early afternoon Tokyo time, Japan’s Nikkei 225 had gained 5%, rising to 32,691.34. Hong Kong’s Hang Seng index also recovered some ground, although it remained far from recouping its 13.2% loss on Monday, its worst performance since the 1997 Asian financial crisis. The Hang Seng closed up 1.6% at 20,140.78, while the Shanghai Composite saw a 0.9% increase, closing at 3,124.77.
South Korea’s Kospi rose by 0.1% to 2,331.80, and Australia’s S&P/ASX 200 climbed 1.7%, ending the session at 7,471.10. Markets in New Zealand and Australia also posted gains.
Investors Brace for Trump’s Next Move Amid Trade War Concerns
On Monday, US markets were left reeling, with the S&P 500 slipping 0.2% as investors nervously awaited President Trump’s next steps in the ongoing trade war. If trade deals with other countries materialize, Trump may reduce tariffs, potentially averting a recession. However, prolonged tariffs could further dampen stock prices.
The Dow Jones Industrial Average fell by 349 points, or 0.9%, while the Nasdaq Composite eked out a 0.1% gain. The indices had opened sharply lower, with the Dow diving as much as 1,700 points amid worsening global market conditions. A dramatic reversal followed, with the Dow soaring nearly 900 points by late morning. The S&P 500 rebounded from a 4.7% drop to climb 3.4%, marking what could have been its largest single-day gain in years.
The sharp recovery was sparked by a false rumor that Trump was considering a 90-day tariff pause—a claim that was swiftly debunked by the White House. Nevertheless, the brief rally highlighted the significant influence such speculation has on global investments, with trillions of dollars at stake. Investors are clinging to the hope that Trump may soften his stance on tariffs.
Stocks quickly reversed course, and Trump reaffirmed his position, signaling a potential increase in tariffs on China after the country’s retaliatory tariffs on US goods. Trump has long stated his desire to bring manufacturing jobs back to the US, a process he acknowledges could take years. He has also emphasized his goal of narrowing trade deficits, but it remains unclear how much flexibility exists for negotiations with the US and its trading partners.
Market Volatility Persists Amid Global Uncertainty
Stock indexes remained volatile on Monday, swinging between gains and losses. Much of this uncertainty stems from investors’ hopes that ongoing negotiations might prevent the full implementation of the proposed tariffs.
Global oil markets also took a hit, with concerns over the economic impact of trade barriers weakening demand for fuel. US crude oil prices dipped below $60 per barrel for the first time since 2021, although they edged up 90 cents to $61.60 by Tuesday morning. Brent crude, the international benchmark, gained 89 cents to $65.10 per barrel.
In the currency markets, the US dollar fell slightly to 147.78 Japanese yen, down from 147.85 yen, while the euro dipped to $1.0976 from $1.0905. Gold prices rose by $32 to around $3,006 per ounce, reflecting investor flight to safer assets.
Bitcoin showed a notable recovery, gaining 4.1% to $80,130, following a sharp drop below $79,000 on Monday. Despite the recent gains, Bitcoin remains well below its January peak above $100,000.
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