World
India
Asian equity markets witnessed a broad-based rally on Thursday, with benchmark indices in Japan, South Korea, and Australia surging up to 8%, following U.S. President Donald Trump’s surprise decision to suspend ‘Liberation Day’ tariffs on Chinese goods for 90 days. The move, aimed at easing global trade tensions, sparked optimism across global markets, while hopes of an economic stimulus in China further buoyed investor sentiment.
Japan’s Nikkei 225 led the regional gains, skyrocketing 8.66% to close at 34,450, marking one of its strongest single-day rallies in recent years. South Korea’s Kospi surged 5.69% to 2,424.08, while Australia’s S&P/ASX 200 jumped 4.69% to 7,721, driven by gains in energy and financial stocks.
Mainland China’s Shanghai Composite Index gained 0.93%, and Hong Kong’s Hang Seng added 1.71%, as reports emerged of an emergency meeting among China’s top leadership to finalize an economic stimulus package. The proposed measures are likely to include fiscal support for housing, consumption, and innovation sectors—key pillars of China’s domestic economy.
Trump’s Surprise Pause Eases Trade Tensions
In a post on Truth Social, President Trump announced that the U.S. would temporarily suspend additional punitive tariffs on Chinese goods for 90 days, slashing the reciprocal duties to 10% from the previously imposed 125%. Trump said the decision followed calls from over 75 countries seeking a resolution to escalating global trade disruptions.
“The days of ripping off the USA and other countries are no longer sustainable or acceptable,” Trump wrote. He described the 90-day pause as a chance for China to “reset” its relationship with global trade norms and avoid further escalation.
The original tariffs—announced as part of Trump’s ‘Liberation Day’ package—had triggered concern among businesses and investors, especially after Chinese exports became subject to steep U.S. duties. Thursday’s easing offered much-needed relief, spurring a wave of buying across Asian markets.
China Eyes Stimulus as Strategic Response
Sources told Bloomberg that Chinese policymakers are meeting today in Beijing to finalize a fresh economic stimulus package. The ad-hoc session will reportedly focus on boosting consumer demand, supporting the housing market, and driving technological innovation—key areas expected to shield China’s economy from the impact of global trade uncertainty.
In a note to investors, Nomura said it expects the Chinese government to accelerate fiscal spending and deploy state-backed stabilisation funds, supported by the People’s Bank of China (PBoC). Nomura also flagged the possibility of high-profile policy rate cuts and reduction in reserve requirement ratios (RRR) to inject more liquidity into the economy.
“We believe China is preparing for a more aggressive response amid heightened U.S. pressure. This is an unprecedented game of brinkmanship, and neither side has shown intent to back down,” the brokerage said.
Despite the gains, analysts caution that the geopolitical situation remains fragile. The 90-day window could provide breathing room for both sides to recalibrate, but any sign of renewed friction or missed negotiation opportunities could reignite volatility.
With Indian markets closed on Thursday due to Mahavir Jayanti, domestic investors are expected to react to the global cues on Friday, when trading resumes on the BSE and NSE.
ALSO READ: Stock Market Today: Will Indian Stock Market Take a Break On Occasion Of Mahavir Jaynti??
