Global Market Rally After Tariff Break

Asian stock markets recorded major gains on April 10, 2025, after the U.S. stock market posted historic highs. This global rally followed President Donald Trump's decision to pause most tariffs for 90 days, which eased trade tensions and improved investor sentiment across the world.

U.S. Markets Trigger Global Optimism

On April 9, the U.S. financial markets closed with some of the largest gains in decades:

• S&P 500 jumped 9.5%

• Dow Jones surged 7.9%

• Nasdaq Composite climbed 12.2%

The relief came after the White House announced a 90-day pause on most tariffs, excluding those on China which were increased to 125%.

Asian Markets React Positively

Following the U.S. rally, major Asian indices saw strong positive movements:

• Nikkei 225 (Japan): +8.1%

• Kospi (South Korea): +5.5%

• Hang Seng (Hong Kong): +3.7%

• SSE Composite (China): +4.2%

• S&P/ASX 200 (Australia): +4.7%

Chinese markets rose even as U.S. tariffs on Chinese imports were hiked. This is attributed to state-backed buying and domestic stimulus hopes.

What Prompted the Surge?

The main driver behind this rally is the temporary trade relief. Investors globally saw this move as a sign that the threat of a full-blown global recession is weakening — at least for now.

Impact on Currencies and Commodities

The global market rally also affected other economic sectors:

• The U.S. Dollar weakened slightly against the Yen and Euro.

• Gold prices rose by 1.5%, while oil prices dipped slightly.

• Bond yields started stabilizing as investors turned to equities.

Experts’ Take

Analysts suggest this move is a short-term relief, and long-term outcomes will depend on future U.S.-China relations and global demand.

What's Next?

While markets have celebrated the pause in tariffs, economists warn that uncertainty still looms. Any reversal in the decision or new trade issues could disrupt this momentum.

Study Update - times-news.in