Wall Street’s major indexes began the day on a positive note after a challenging selloff, which has resulted in the loss of trillions of dollars since last week. Investors are now closely monitoring any signs that the US may be open to negotiations regarding some of the aggressive tariffs.
The Dow Jones Industrial Average surged 2.3% in the morning session, while the S&P 500 and the Nasdaq Composite index saw increases of 2.6% and a remarkable 3.7%, respectively.
In Europe, markets continued their recovery from the previous day’s substantial losses.
Encouraged by Wall Street’s strong performance, London’s FTSE index gained 3.3% this afternoon, while the Paris CAC and Frankfurt DAX followed suit, rising 3.2% and 2.6%, respectively.
Earlier in the day, Asian markets showed signs of recovery from more than a year-long low, although many investors remained cautious. They are hopeful that Washington may be willing to negotiate a resolution to the tariffs that have caused considerable turmoil.
Japan’s Nikkei index saw a significant rebound of 5.6%, outperforming other regional markets. Meanwhile, U.S. Treasury Secretary Scott Bessent has been assigned to lead trade negotiations with Tokyo. “Importantly, a little ray of sunshine is starting to emerge, giving hope that the US is genuinely open to trade negotiations—most notably with Japan,” commented Tapas Strickland, head of market economics at the National Australia Bank. However, he warned that volatility remains exceedingly high, with the VIX index spiking above 60 overnight, an occurrence only seen twice since the onset of the Covid pandemic.
The bounce in Tokyo follows a steep selloff in recent days, while Chinese markets experienced only modest gains after state-backed sovereign wealth funds stepped in to buy shares.
In Taiwan, which heavily relies on chip exports, the benchmark index dropped by 5%, a day after registering its worst decline on record.
MSCI’s broadest index for Asia-Pacific shares added 1.7%, recovering from its lowest level since February 2024. This rebound was largely driven by Japanese equities, despite a previous dive of over 10% in the preceding sessions.
Thai stocks fell nearly 6% due to selloff activity following a holiday, while Indonesia, returning from a week-long break, faced losses of 9%. Conversely, Hong Kong’s Hang Seng index rose by 1.5%, recovering from its steepest drop since the 1997 Asian financial crisis.
On the mainland, Chinese blue chips gained 1%, supported by purchases from sovereign fund Central Huijin Investment and other state-backed investors. Meanwhile, Indonesian stocks plummeted nearly 8% in today’s trading, marking the largest decline in over a decade as uncertainty surrounding US President Donald Trump’s global tariffs continues to unsettle markets.
This heightened market uncertainty has been exacerbated by conflicting headlines related to trade, as investors seek stability amid the volatility. An erroneous report from CNBC regarding President Trump considering a 90-day pause on tariffs for countries other than China was swiftly denied by the White House.
Trump has remained steadfast concerning China, pledging to impose an additional 50% levy if Beijing does not revoke its retaliatory tariffs against the US. In response, Beijing reiterated its refusal to accept what it described as the “blackmail nature” of US tariff threats.
US business leaders are increasingly voicing their concerns about the potential economic and financial repercussions stemming from Trump’s global trade war. JPMorgan Chase CEO Jamie Dimon warned of inflating costs and a possible slowdown in the US economy. On a diplomatic note, the European Commission announced that it had extended a “zero-for-zero” tariff proposal aimed at avoiding a trade war with the US, while EU ministers agreed to prioritize these negotiations, alongside implementing 25% tariffs on select US imports.
“Edited By Ali Musa
Axadle Times International – Monitoring.”
