Asian financial markets saw a sharp rebound on Thursday following news that the Trump administration has paused plans for further tariff hikes, easing investor anxiety over escalating trade tensions.
Major indices across the region closed higher, with the Nikkei 225 gaining 1.8%, Hong Kong’s Hang Seng rising 2.3%, and South Korea’s KOSPI up by 1.5%. The rally came after U.S. officials announced a temporary halt to new tariffs on key Asian exports, citing “constructive progress” in ongoing trade negotiations.
Investors welcomed the development, interpreting it as a sign of potential de-escalation in a trade conflict that had previously roiled global markets and threatened supply chains.
“This pause signals a cooling-off period and offers some breathing room for businesses and investors alike,” said Kenji Aoyama, chief market strategist at Tokyo-based Asahi Capital. “While uncertainties remain, the tone from Washington is notably less aggressive.”
Technology and manufacturing stocks—particularly those with heavy exposure to U.S. markets—led the rally, reflecting renewed investor confidence.
The tariff suspension is the latest in a series of unpredictable moves from former President Donald Trump, whose trade policies have continued to impact markets even after his return to the political stage.
Analysts, however, caution that the situation remains fluid. “This is a temporary relief rally,” noted Clara Wu, an economist with Hong Kong Investment Group. “Markets will be watching closely for signs of a permanent deal—or another abrupt reversal.”
The news also lifted commodity prices and supported regional currencies, with the Chinese yuan and Japanese yen strengthening slightly against the U.S. dollar.
Investors now await further details from Washington and Beijing as negotiations resume in the coming days.
