Chicago – April 10, 2025
HONG KONG – Asian markets rallied on Thursday, mirroring Wall Street’s strong performance from the previous day after President Trump announced a temporary pause on increased global tariffs.
Japan’s Nikkei Index surged 9.1%, and South Korea’s Kospi climbed 6.6%, lifting it out of bear market territory. Taiwan’s composite index also rebounded impressively, jumping 9.25%, recovering after its steepest one-day drop ever.
Hong Kong’s Hang Seng Index rose 2%, and major Chinese indices saw modest gains as well.
However, investors are still watching for China’s response. While Trump paused the global tariff hikes, China was excluded from the reprieve and instead faced even steeper tariffs now raised to a massive 125% on Chinese exports. This escalation came just hours after China imposed retaliatory duties of 84% on American goods. The U.S. tariffs were in effect for just 12 hours before Trump announced a 90-day suspension, which he made during U.S. trading hours, sparking a major rally on Wall Street.
Trump expressed optimism that Chinese President Xi Jinping would eventually negotiate a trade deal, stating, “President Xi’s a very smart guy and I think we’ll end up making a very good deal.” He also said he didn’t expect to raise tariffs further to get China to the negotiating table.
Despite Trump’s optimism, analysts believe the impact of the heightened tariffs on China’s economy may be limited. According to T. Rowe Price analyst Wenli Zheng, many Chinese companies have minimal exposure to the U.S. in terms of revenue.
Still, investors remain eager for a resolution to the tense trade standoff between the world’s two largest economies.
Meanwhile, China signaled its readiness to continue the trade battle. At a press conference Thursday, foreign ministry spokesman Lin Jian emphasized that China doesn’t seek a trade war but won’t back down from one either.
“Let me stress that tariff wars and trade wars have no winners. China does not want to fight them, but will not fear when they come our way,” Lin said.
He added that China is open to negotiations but only if the U.S. shows a genuine willingness to cooperate with “equality, respect, and mutual benefit.”
