After days of market volatility, Wall Street experienced a historic rally on Wednesday night following President Trump’s announcement that he would delay a planned tariff hike for nearly all countries by 90 days.
The Dow Jones Industrial Average jumped 7.9% to 40,608.45, the S&P 500 soared 9.5% to 5,456.90, and the Nasdaq Composite surged 12.2% to close at 17,124.97.
The momentum carried into Asian markets on Thursday. Japan’s Nikkei 225 surged 8.3% to 34,353.17 shortly after the Tokyo exchange opened as investors cheered the easing of trade tensions.
Australia’s S&P/ASX 200 advanced 4.7% to 7,722.90, while South Korea’s Kospi climbed 5.5% to 2,419.37.
In Hong Kong, the Hang Seng Index rose 3.7% to 21,003.84, and China’s Shanghai Composite increased 1.5% to 3,232.86.
China’s retaliatory tariffs—84% on all American goods—have officially come into force, escalating the trade war between Beijing and Washington.
In response to the move, President Trump announced on Wednesday that the U.S. would raise tariffs on Chinese imports to an unprecedented 125%, citing what he described as a “lack of respect” from the Chinese government.
A China Daily editorial published last night firmly stated that “caving in to US pressure is out of the question for Beijing.”
The editorial acknowledged the impact of the steep US tariffs, noting: “It is not that China does not understand what the unprecedentedly high tariffs mean for its exports and the economy in general. Profits of export-driven industries will suffer, and the resulting drop in manufacturing investment and consumer confidence will weigh on economic growth.”
However, it emphasized that giving in to what it called Washington’s “tariff bullying” would be futile, arguing that the US is openly working to exclude China from its consumer market and restructure global supply chains to its own advantage.
In response, China appears to be reaching out to other nations in a bid to strengthen trade ties beyond the US. Markets reacted positively to President Trump’s temporary pause on tariffs, including in China, where major trading indices remained relatively stable this week—likely aided by government intervention.
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