Asian stock markets climbed on Tuesday after US indexes approached record highs, boosted by eased US-China trade friction
Asian markets opened positively on Tuesday, buoyed by Wall Street’s strong performance and a temporary easing of trade tensions between the US and China. The US decision to extend tariff exemptions for certain Chinese goods until 31 August helped lift investor sentiment, particularly in sectors reliant on imports such as solar manufacturing.
Hong Kong’s Hang Seng index climbed 1.1% to 23,417.39, the Shanghai Composite rose 0.3% to 3,356.36, and Tokyo’s Nikkei 225 was up 0.6% to 37,683.19. In Taiwan, the Taiex surged 1.4%, while Australia’s S&P/ASX 200 gained 0.7%. South Korean markets remained closed due to a snap election triggered by former President Yoon Suk Yeol’s removal and looming trial on rebellion charges.
On Wall Street, the S&P 500 gained 0.4% to close at 5,935.94, nearing record highs. The Nasdaq rose 0.7% to 19,242.61, while the Dow Jones added 0.1% to 42,305.48. Stocks recovered from early losses driven by weak US manufacturing data, with companies like Nvidia and Meta leading the gains.
President Donald Trump’s announcement to double steel tariffs to 50% gave a boost to US steelmakers. Nucor and Steel Dynamics saw sharp rises of over 10%, while automakers such as Ford and GM dropped by nearly 4% due to expected cost increases.
Energy prices rose amid uncertainty from continued Ukrainian strikes on Russian oil facilities. US crude climbed to $63.14 a barrel, and Brent crude rose to $65.19.
In the bond market, Treasury yields edged higher, reflecting investor concern about the fiscal impact of Trump’s tax cut plans. The 10-year yield rose to 4.44%.
Despite lingering geopolitical tensions, including China’s condemnation of US restrictions on AI-related exports and student visa plans, investors reacted positively to signs of near-term economic stability. Currency markets reflected similar optimism, with the dollar strengthening against the yen and the euro seeing a slight decline.
(With AP inputs)
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