Markets across the Asia-Pacific region rebounded after significant losses attributed to threats from U.S. President Donald Trump regarding trade tariffs.
Markets Recover
Japan’s Nikkei 225 surged 5.31%, and the Topix jumped 5.65%. Other indices also saw increases: Australia’s S&P/ASX 200 added 1.92%, South Korea’s Kospi rose 0.34%, and the small-cap Kosdaq gained 0.96%. Hong Kong’s Hang Seng Index climbed 1.58%, and its Hang Seng Tech Index soared 3.57%.
Trade War and Its Impact
Investors are closely monitoring Trump’s latest actions. On Monday, he threatened to impose additional 50% tariffs on Chinese goods if Beijing did not lift its duties on U.S. imports. The new tariffs are expected to take effect on April 9, adding uncertainty to the markets.
Yuan Decline Amid Global Tensions
China’s yuan fell to its lowest level since 2023, hitting 7.34 against the dollar. This followed the central bank loosening its grip on the currency amid increasing pressure from the global trade conflict. Both onshore and offshore yuan have dropped by about 1% this month.
Asian markets are showing signs of recovery; however, volatility remains high due to uncertainty surrounding international trade and the state of the yuan.
