Madrid Times

España Viva: Your Window to Madrid and Beyond
Saturday, May 17, 2025

Asian Markets Rebound Following Historic Decline Amid Trade Tensions

Japanese stocks lead gains while Southeast Asian markets remain under pressure.
Asian stock markets closed with notable gains on Tuesday, following a sharp decline the previous day attributed to escalating trade tensions initiated by the United States.

Japan led the recovery, with the Tokyo Stock Exchange closing up by 6.01%, rebounding from a decline of 7.68% the day before.

The semiconductor sector saw significant increases, with shares of companies such as Disco, Lasertec, Tokyo Electron, and Advantest rising by 12.67%, 8.27%, 8.73%, and 11.82%, respectively.

The Hang Seng Index in Hong Kong also experienced an increase of 1.51%, recovering from a loss of over 13.2% on Monday, which marked the largest daily decline since 1997. Meanwhile, the Shanghai Composite Index and the Shenzhen Composite Index in mainland China recorded gains of 1.58% and 0.81%, respectively, in contrast to their declines of 7.34% and 9.66% the previous day.

This resurgence follows announcements from the Chinese government indicating that it would implement "countermeasures" should U.S. President Donald Trump impose additional tariffs of 50%—potentially raising the total to 104%—on Chinese imports.

In response, Trump hinted at "fair agreements" with negotiating countries without indicating a cessation of his tariff policy, slightly boosting Wall Street indices before the market close.

The stabilization of Chinese markets was bolstered by capital investments and assurances from domestic authorities and companies.

Central Huijin Investment, a state-owned fund, remarked on its capacity to maintain market stability, emphasizing the strength of its assets and ample liquidity available to support the market.

According to the Industrial Securities Economic and Financial Research Institute, the top 300 stocks listed on the Shanghai and Shenzhen exchanges typically see a mean increase of 3.73% in the five days following similar announcements from the state fund.

Additionally, the People’s Bank of China stated that Central Huijin Investment maintains a stable operation and a healthy balance sheet, with established financing channels that provide the necessary market support.

It further noted that liquidity support could be available if needed.

Other state investment platforms, such as China Chengtong Holdings Group and China Reform Holdings, also announced increased investments aimed at mitigating the effects of the ongoing trade war on Chinese markets.

In contrast, Southeast Asian markets saw varied performances.

The Kospi index in South Korea gained 0.26% after a decline of over 5.5% the previous day.

The Taipei Exchange remained negative, with the Taiex index dropping slightly over 4%, adding to a significant fall of 9.7% recorded the previous day amid ongoing trade tensions.

In Indonesia, the main stock index plummeted more than 9% within the first minutes of trading after being closed since March 28. This prompted a temporary trading halt under new regulatory measures implemented the day prior.

Other Southeast Asian markets also showed negative figures, with major declines observed in Vietnam (-7.5%), Thailand (-4.17%), and Singapore (-1.22%).
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
US and EU Make Progress in Trade Talks, While Vietnam Negotiations Also Advance
Passenger Travels Under Wrong Identity on British Airways Flight
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Russia and Ukraine Hold First Direct Peace Talks in Three Years — But No Breakthrough Yet
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
Portuguese Right-Wing Leader Collapses During Campaign Rally
A Pakistani imam in Italy gave a sermon stating that every Muslim should fight the infidels or face ‘catastrophic consequences’.
EU Court Orders Disclosure of von der Leyen’s Texts with Pfizer CEO Over €35 Billion Vaccine Deal
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
CIA Files Reveal Klaus Barbie's Role in Bolivian Drug Trade and Dictatorship Support
Daughter of crypto boss escapes Paris kidnap in latest in series of attacks
U.S. FDA to Remove Oral Fluoride Supplements for Children Amid Gut Health Concerns
Kim Kardashian Testifies in Paris Robbery Trial, Tells Gang Leader: 'I Forgive You'
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Flip flop: UK Introduces New Immigration Policy to Reduce Net Migration
Poland Tightens Immigration Policy with New Plan to Suspend Asylum Law
Trump says it would be 'stupid' not to accept gift of Qatari plane
8-Year-Old Orders 70,000 Lollipops Using Mother’s Phone, Prompting $4,200 Amazon Bill and Viral Facebook Plea
Quantum Computing Threatens Bitcoin Security
American citizens account for 70% of worldwide pharmaceutical sales despite comprising only 4% of global population
Michael Jordan to Serve as Analyst for NBA Games
New Details Emerge on Syrian Attacker's Motives in German Festival Stabbing
US and China Agree to Reduce Tariffs by 115% in Bilateral Trade Deal
Zelenskyy Seeks Ceasefire as Putin Proposes Direct Talks in Turkiye
Arsenal Stages Comeback to Draw 2-2 Against Liverpool in Premier League Clash
Cardinal Robert Prevost Elected as Pope Leo XIV, Marking a Historic Papacy
India-Pakistan conflict may be first test for Chinese military tech
Bill Gates Announces Plan to Wind Down Philanthropic Foundation and Disperse Wealth
Historic Papal Conclave Set to Commence in Rome
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
EU Hits TikTok with €530 Million Fine Over China Data Transfers
Warren Buffett to Step Down as Berkshire CEO After Nearly 60 Years
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
U.S. and Ukraine Poised to Sign Strategic Critical Minerals Deal Amid Geopolitical Shifts
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Spain Restores Power After Unprecedented Nationwide Blackout
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
×