Asia-Pacific markets rose Tuesday, rebounding from the previous session’s losses over U.S. President Donald Trump’s tariff policy and threats of even higher levies against China. Japan’s Nikkei 225 rose 6.03% to close at 33,012.58, while the Topix gained 6.26% to end the trading day at 2,432.02. Australia’s ASX 200 added 2.27% to close at 7,510.
South Korea’s Kospi rose 0.26% to close at 2,334.23, and the small-cap Kosdaq added 1.1% to close at 658.45. Hong Kong’s Hang Seng Index climbed 1.51% to close at 20,127.68, while the Hang Seng Tech Index jumped 4.49%. Mainland China’s CSI 300 rose 1.71% to close at 3,650.76.
On Monday, Hong Kong’s stock market led losses in the region, with the Hang Seng Index plummeting over 13% to log its steepest one-day decline since 1997, according to data from FactSet. Indonesia’s Jakarta Composite slid over 7.87% after trading resumed following a temporary circuit breaker. Vietnam’s benchmark index lost 6.48%, and Thailand’s benchmark SET fell to its lowest level since March 2020, data from LSEG showed.
U.S. stock futures rose after the extended losses for a third day following Trump’s tariffs announcement. Futures linked to the Dow Jones Industrial Average jumped 476 points, or 1.2%, while those linked to the S&P 500 were about 1% higher and Nasdaq 100 futures gained 1.1%. Overnight in the U.S., the three major averages closed lower.
The Dow Jones Industrial Average fell for a third day following President Donald Trump’s tariff rollout, dropping 0.91% to close at 37,965.60.
Markets rebound amid tariff tensions
The S&P 500 inched higher by 0.10% to settle at 15,603.26.
The Nasdaq Composite shed 0.23% to end at 5,062.25. Singapore Prime Minister Lawrence Wong warned of “disastrous” consequences if trade disputes escalated. Speaking at a parliamentary meeting, Wong said, “The U.S. may have decided to turn protectionist, but the rest of the world does not have to follow the same path.” He emphasized Singapore’s commitment to open and free trade despite the new 10% tariffs on Singapore goods.
The onshore Chinese yuan depreciated to trade at 7.3363 against the greenback on Tuesday, marking the lowest level since September 2023. While markets anticipate a rate breach of 7.5 amid renewed tariff threats, the People’s Bank of China (PBOC) may still stabilize the currency, said Dan Wang, China Director at Eurasia Group. Markets in Asia were oversold, said Stanley Tang, senior portfolio manager at Sumitomo Mitsui DS Asset Management.
“While Asian equities are largely in the green after a steep sell-off, the rebound may be capped by a wait-and-see approach.”
George Boubouras, managing director at K2 Asset Management, noted that the current rebound, especially in Japan, South Korea, Indonesia, Australia, and New Zealand, has some merit. However, he maintained an ‘underweight’ rating for Hong Kong and Chinese markets given the substantial adjustments needed from proposed tariffs. Indonesia’s benchmark Jakarta Stock Exchange Composite Index fell 9.35% after trading resumed at 9:30 AM local time.
The Indonesian rupiah fell to a record low to trade at 16,850 against the greenback. China’s Commerce Ministry said it “resolutely opposes” U.S. President Donald Trump’s threat of escalating tariffs and vowed to take countermeasures. Trump had said he would impose additional 50% duties on U.S. imports from China if Beijing did not withdraw the 34% tariff it imposed on American products last week.
“The U.S. threat to escalate tariffs on China is a mistake on top of a mistake,” the statement read.
