Most Asian stocks rose on Tuesday amid persistent hopes that U.S. President Donald Trump will grant more exemptions from his trade tariff plans, although gains were capped by uncertainty over more levies and a brewing trade war.
Chinese stocks were outliers, flitting between gains and losses in morning trade as Beijing became embroiled in a dire trade dispute with the United States. While local stocks took some relief from exemptions in Trump’s tariffs, this was limited by the president signaling that any exemptions will be temporary.
Asian markets took a positive lead-in from Wall Street, which clocked two straight days of gains on optimism over potential tariff exemptions. A swathe of positive bank earnings also aided Wall Street.
But gains on Wall Street were also capped by caution over trade and the economy. U.S. stock futures fell slightly in Asian trade, with S&P 500 Futures down 0.1%.
Investors were also on edge over any big swings in markets, especially with trading volumes expected to be low this week, ahead of the Good Friday holiday.
Asia stocks underpinned by tech, autos, on tariff hopes
Japan’s Nikkei 225, South Korea’s KOSPI, and Singapore’s Straits Times index were among the best performers in Asia, rising between 0.9% and 1.3%. All three were boosted by gains in technology stocks, while in the case of the Nikkei and KOSPI, automobile stocks too.
The Taiwan Weighted index also added about 1%.
Tech stocks clocked extended gains after the White House signaled that Trump’s 145% reciprocal tariffs on China will exclude electronics- a trend that heralds fewer near-term disruptions in the industry.
But Trump pushed back against this, stating that the exclusion was temporary, and that he will unveil separate tariffs on electronics soon. Media reports showed that his administration was already probing electronics imports.
Still, Trump on Monday suggested that he could also scale back some of his 25% tariffs on automobiles to lessen their economic impact, with his comments sparking a rally in auto stocks with large U.S. exposure.
Japan’s Honda (NYSE:HMC) Motor (TYO:7267) and Toyota Motor Corp (TYO:7203) surged nearly 5% each, while South Korea’s Hyundai (OTC:HYMTF) added 3.7%.
Broader Asian markets also advanced on hopes of more U.S. tariff forgiveness. Australia’s ASX 200 rose 0.5% after the minutes of the Reserve Bank’s late-March meeting showed policymakers unclear over when they will cut interest rates next.
Fast-food franchise operator Collins Foods Ltd (ASX:CKF) was an outlier in Australia, sinking more than 4% after it flagged an impairment in its Netherland operations.
Japan’s broader TOPIX index added 1%, while futures for India’s Nifty 50 index pointed to a flat open after a strong rally in local markets last week. Indian inflation data for March is due later on Tuesday.
Chinese stocks whipsaw amid trade jitters; GDP awaited
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes traded down about 0.3%, while Hong Kong’s Hang Seng index was flat after a positive start.
Uncertainty over the Chinese economy ramped up in the face of a bitter trade war with the U.S., especially as Beijing imposed 125% retaliatory tariffs on American goods.
But Trump pushed back against this, stating that the exclusion was temporary, and that he will unveil separate tariffs on electronics soon. Media reports showed that his administration was already probing electronics imports.
Still, Trump on Monday suggested that he could also scale back some of his 25% tariffs on automobiles to lessen their economic impact, with his comments sparking a rally in auto stocks with large U.S. exposure.
Japan’s Honda (NYSE:HMC) Motor (TYO:7267) and Toyota Motor Corp (TYO:7203) surged nearly 5% each, while South Korea’s Hyundai (OTC:HYMTF) added 3.7%.
Broader Asian markets also advanced on hopes of more U.S. tariff forgiveness. Australia’s ASX 200 rose 0.5% after the minutes of the Reserve Bank’s late-March meeting showed policymakers unclear over when they will cut interest rates next.
Fast-food franchise operator Collins Foods Ltd (ASX:CKF) was an outlier in Australia, sinking more than 4% after it flagged an impairment in its Netherland operations.
Japan’s broader TOPIX index added 1%, while futures for India’s Nifty 50 index pointed to a flat open after a strong rally in local markets last week. Indian inflation data for March is due later on Tuesday.
