Asian stock markets rose cautiously on Tuesday, lifted by hopes that the US may offer additional exemptions from its steep trade tariffs. However, the gains were tempered by uncertainty surrounding the longevity of these concessions and ongoing tensions between Washington and Beijing.
China Stocks Struggle to Find Direction Amid Tariff Turbulence
While most Asian bourses advanced, Chinese equities remained choppy, fluctuating between gains and losses throughout the morning session. Investors reacted to mixed signals from the US, where President Donald Trump offered temporary relief on some tariffs but warned of more levies to come—particularly targeting the electronics sector.
Despite a slight boost from early exemptions, Chinese markets remained jittery as Beijing and Washington’s trade standoff deepened. The Shanghai Composite Index and CSI 300 both edged down by 0.3%, while Hong Kong’s Hang Seng Index struggled to hold onto early gains, trading flat by midday.
Technology and Auto Stocks Lead Gains in Japan, South Korea, and Singapore
Japan’s Nikkei 225, South Korea’s KOSPI, and Singapore’s Straits Times Index all posted strong intraday gains between 0.9% and 1.3%, driven by robust performances in the technology and auto sectors. Hopes that the electronics industry will be spared from the latest round of tariffs offered a short-term reprieve for tech-heavy indices.
In Japan, Honda and Toyota saw their shares soar nearly 5%, while Hyundai in South Korea jumped 3.7%, after Trump hinted at a potential rollback of his 25% auto tariffs to reduce economic disruption.
Australia and India Show Modest Momentum
Australia’s ASX 200 added 0.5%, supported by investor optimism following the RBA’s policy minutes, which revealed uncertainty about the timing of future rate cuts. However, Collins Foods Ltd slipped over 4% after reporting impairments in its European operations.
India’s Nifty 50 futures indicated a flat open following last week’s rally. Investors are awaiting the release of India’s March inflation report later today, which could shape expectations for RBI’s next policy move.
All Eyes on China’s Q1 GDP Report
Investor attention is now turning to China’s upcoming first-quarter GDP data, expected on Wednesday. Analysts are watching closely to assess whether Beijing’s aggressive stimulus policies have successfully countered the economic drag caused by the 125% retaliatory tariffs on US goods.
Early estimates suggest mixed expectations, with several economists trimming their China growth forecasts due to escalating trade pressures and weakening external demand.
🔍 Key Takeaways for Traders at DailyForex.pk:
- Asian equities rebound on hopes of additional US tariff relief.
- Chinese markets remain fragile due to trade war uncertainty.
- Auto and tech sectors outperform on tariff exemption optimism.
- Investors await key data: China GDP and Indian inflation to guide next moves.
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