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%).
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%).
Translation:
Translated by AI
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