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Asian stocks rise as US markets rally on tariff pause
An employee of a foreign exchange dealing company sits under an electronic board showing the stock index of Japan’s Nikkei 225, in Tokyo Thursday, April 10, 2025. (AP)
TOKYO, April 10, (AP): World markets soared on Thursday, with Japan’s benchmark jumping more than 9%, as investors welcomed U.S. President Donald Trump’s decision to put his sharp tariff hikes on hold for 90 days, though he excluded China from the reprieve.
In early trading, Germany’s DAX initially gained more than 8%. It was up 7.5% at 21,141.53 a bit later, while the CAC 40 in Paris gained 7.2% to 7,360.23. Britain’s FTSE 100 surged 5.4% to 8,090.02.
However, U.S. futures edged lower and oil prices also declined. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports.
The future for the S&P 500 was down 0.4% while that for the Dow Jones Industrial Average edged 0.2% lower. Analysts had expected the global comeback given that U.S. stocks had one of their best days in history on Wednesday as investors registered their relief over Trump’s decision.
On Thursday, Japan’s benchmark Nikkei 225 jumped 9.1% to finish at 34,609.00, zooming upward as soon as trading began. Australia’s S&P/ASX 200 soared 4.5% to 7,709.60.
South Korea’s Kospi gained 6.6% to 2,445.06. Hong Kong’s Hang Seng added 2.4% to 20,750.65. The Shanghai Composite rose 1.2% to 3,223.64. Investors went “from fear to euphoria,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.
“It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Trump has kept.
On Wall Street, the S&P 500 surged 9.5%, an amount that would count as a good year for the market. It had been sinking earlier in the day on worries that Trump’s trade war could drag the global economy into a recession. But then came the words investors worldwide had been waiting and wishing for.
“I have authorized a 90 day PAUSE,” Trump said, saying more than 75 countries are negotiating on trade and not retaliating against his latest increases in tariffs. Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.
China was a huge exception, though, with Trump saying tariffs are going up to 125% against its products. The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage.
U.S. stocks are also still below where they were just a week ago, when Trump announced worldwide tariffs on what he called “Liberation Day.” But on Wednesday, at least, the focus on Wall Street was on the positive. The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%.
The Nasdaq composite leaped 12.2%. The S&P 500 had its third-best day since 1940. The relief came after doubts had crept in about whether Trump cared about the financial pain the U.S. stock market was taking because of his tariffs. The S&P 500, the index that sits at the center of many 401(k) accounts, came into the day nearly 19% below its record set less than two months ago.
That surprised many professional investors who had long thought that a president who used to crow about records for the Dow under his watch would pull back on policies if they sent markets reeling. Wednesday’s rally pulled the S&P 500 index away from the edge of what’s called a “bear market.”
That’s what professionals call it when a run-of-the-mill drop of 10% for U.S. stocks, which happens every year or so, graduates into a more vicious fall of 20%. The index is now down 11.2% from its record. Wall Street also got a boost from a relatively smooth auction of U.S. Treasurys on Wednesday.
Earlier jumps in Treasury yields had rattled the market, indicating increasing levels of stress. Trump said he had been watching the bond market “getting a little queasy.” Higher yields on Treasurys put pressure on the stock market and push upward on rates for mortgages and other loans for U.S. households and businesses.
U.S. Treasury yields historically have dropped – not risen – during scary times for the market because the bonds are usually seen as some of the safest possible investments.
This week’s sharp rise had brought the yield on the 10-year Treasury back to where it was in late February. After approaching 4.50% in the morning, the 10-year yield pulled back to 4.34% following Trump’s pause and the Treasury’s auction.
That’s still up from 4.26% late Tuesday and from just 4.01% at the end of last week. In energy trading, benchmark U.S. crude fell 81 cents to $61.54 a barrel. Brent crude, the international standard, declined 93 cents to $64.55 a barrel. In currency trading, the U.S. dollar fell to 146.77 Japanese yen from 147.38 yen. The euro cost $1.0986, up from $1.0954.
A view of the Grand Ethiopian Renaissance Dam in Benishangul-Gumuz, Ethiopia on Sept 9. (AP)
ADDIS ABABA, Ethiopia, Sept 10, (AP): Ethiopia on Tuesday inaugurated Africa’s largest dam to boost the economy, end frequent blackouts and support the growth of electric vehicle development in a country that has banned the importation of gasoline-powered vehicles. As reservoir waters flowed into the turbines of the Grand Renaissance Dam, Ethiopians dressed in colorful regalia viewed the ceremony on large screens across the capital, Addis Ababa, and celebrated the achievement with dancing to traditional music.
“We will have enough power to charge our electric vehicles from the new dam,” said Belay Tigabu, a bus driver in Addis Ababa’s main bus terminal. The almost $5 billion mega-dam, located on the Blue Nile tributary of the Nile River near Ethiopia’s border with Sudan, will produce more than 5,000 megawatts and is expected to double national electricity generation capacity, according to officials. Ethiopia’s Prime Minister Abiy Ahmed, speaking during the launch, said the dam was a “big achievement” that would show the world what Africans are capable of accomplishing.
Dozens of visiting African heads of state and government joined Abiy for the inauguration, with many expressing interest in importing power from Ethiopia. “I am proud to announce we will soon be signing an agreement with the government of Ethiopia to receive electricity from the dam that will benefit our hospitals and schools,” said South Sudan’s President Salva Kiir. Kenyan President William Ruto said his nation is looking to sign a power purchasing agreement with Ethiopia based on the resources of the dam project, which he said was a “pan-African statement.”
Already an importer of Ethiopia electricity, Ruto said Kenya is seeking to alleviate the electricity deficit his country is experiencing. He said the dam “exemplifies the scale and ambition of African-led infrastructure and aligns with the Africa Union’s vision of continental energy connectivity.” But Ethiopia’s new dam has faced controversy, with neighboring Egypt expressing concerns over reduced water flows downstream.
Egypt has long opposed the dam because of concerns it would deplete its share of Nile waters. The Arab world’s most populous country relies almost entirely on the Nile to supply water for agriculture and its more than 100 million people. Tamim Khallaf, a spokesperson for Egypt’s Ministry of Foreign Affairs, told The Associated Press that the dam posed an “existential threat.”
A dealer stands near the screens showing the Korea Composite Stock Price Index (KOSPI), (left), and the foreign exchange rate between US dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea on Sept 10. (AP)
TOKYO, Sept 10, (AP): Asian shares mostly rose in early Wednesday trading, echoing record rallies on Wall Street after the latest update on the job market bolstered hopes the US Federal Reserve will cut interest rates. Japan’s benchmark Nikkei 225 gained 0.9% to finish at 43,837.67. Australia’s S&P/ASX 200 added 0.3% to 8,830.40.
South Korea’s Kospi jumped 1.7% to 3,314.66. Hong Kong’s Hang Seng rose 1.1% to 26,223.30, while the Shanghai Composite edged up 0.2% to 3,814.63. Uncertainty is still in the air over US-China tariff issues as bilateral talks continue. US President Donald Trump has raised taxes on imports from China, triggering a tit-for-tat tariff war.
The U.S. is currently charging an additional 30% tariff on Chinese goods and China is charging a 10% tariff under a de-escalation deal reached in May. On Wall Street, the S&P 500 rose 0.3% and squeaked past its all-time high set last week. The Dow Jones Industrial Average climbed 196 points, or 0.4%, while the Nasdaq composite gained 0.4%.
They likewise set records. Traders have become convinced that the Federal Reserve will cut its main interest rate for the first time this year at its next meeting in a week, in order to prop up the slowing job market. A report on Tuesday offered the latest signal of weakness, when the US government said its prior count of jobs across the country through March may have been too high by 911,000, or 0.6%.
That was before President Donald Trump shocked the economy and financial markets in April by rolling out tariffs on countries worldwide. The bet on Wall Street is that such data will convince Fed officials that the job market is the bigger problem now for the economy than the threat of inflation worsening because of Trump’s tariffs.
That would push them to cut interest rates, a move that would give the economy a boost but could also send inflation higher. A lot is riding on Wall Street’s hope that the job market is slowing by just the right amount: Investors have already sent US stock prices to records because of it. Inflation also needs to stay at a reasonable level, even though it looks tough to get below the Fed’s target of 2%. In the bond market, the yield on the 10-year Treasury rose to 4.08% from 4.05% late Monday.
Ethiopia inaugurates Africa’s largest hydroelectric dam as neighbors eye power imports
Asian shares mostly rise, cheered by Wall Street rally to more records
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