Asian stock markets saw a rebound on Thursday, following an overnight surge in US tech stocks after cooler-than-expected US inflation data. However, gains were capped by fresh tariff threats from US President Donald Trump, which reignited concerns over global trade tensions.
Tech Stocks Lead Gains After US Inflation Data
- NASDAQ Composite jumped 1.2% overnight as the latest US Consumer Price Index (CPI) report showed inflation was softer than expected in February.
- Both the headline CPI and core CPI rose just 0.2% month-on-month, below forecasts, boosting investor sentiment in tech-heavy stocks.
- Investors are optimistic that the Federal Reserve may ease monetary policy in response to slowing inflation.
Asian Markets Follow US Tech Rebound
- Japan’s Nikkei 225 gained 1%, while TOPIX rose 0.9%.
- SoftBank Group (TYO:9984) +1.4%
- Tokyo Electron (TYO:8035) +1.8%
- South Korea’s KOSPI added 0.5%, driven by:
- Samsung Electronics (KS:005930) +0.7%
- SK Hynix Inc (KS:000660) +0.4%
- Malaysia’s FTSE KLCI surged 1.2%, while India’s Nifty 50 futures edged up 0.2%.
Trump Escalates Trade War with EU, Asian Markets React
- Trump warned of additional tariffs on European goods if the EU imposes retaliatory tariffs on US products.
- This follows the recent 25% tariff on steel and aluminum imports, further straining relations with key US trading partners.
- Analysts caution that prolonged trade conflicts could dampen global demand for Asian exports, adding volatility to regional markets.
Chinese & Australian Stocks Struggle Amid Uncertainty
- China’s Shanghai Composite fell 0.4%, while the Shanghai Shenzhen CSI 300 dipped 0.2%.
- Hong Kong’s Hang Seng index also dropped 0.3%.
- Australia’s S&P/ASX 200 declined 0.1%, nearing a market correction, having lost 9.7% from its Feb 14 record high of 8,615.20 points.
Market Outlook
Despite the recent gains, trade war fears, economic uncertainties, and Fed rate expectations are likely to keep global markets on edge in the coming weeks. Investors will closely monitor further trade developments and central bank policies to assess market direction.
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