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Global stocks roar higher after Trump pauses most tariffs
STORY: Asian stocks roared higher in early trade Thursday, after U.S. President Donald Trump paused most of his new tariffs for 90 days. The move came after days of market turmoil that wiped trillions of dollars off the value of U.S. stocks: “Well, I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.”Japan’s Nikkei index jumped over 8% early on, following huge gains for Wall Street. Exporters were among the big gainers at the open, with Toyota up close to 10% and chip gear maker Advantest surging by 15%. South Korea’s Kospi index jumped 5%.There were more modest gains for stocks in China, however, where Trump has not paused tariffs. Instead, he turned up the heat again, saying he would raise tariffs on the country to 125%. That could set the stage for further action by Beijing, which has vowed to resist what it calls American “blackmail”. Hong Kong’s Hang Seng gained over 2% in early trade as investors took stock. Now Trump’s stunning reversal could allow time for talks with trading partners. Despite all the turmoil for equities, it may have been the bond market that spurred the change of heart. Investors had grown alarmed by a slide in U.S. government bonds, which normally gain in times of crisis. Some traders said the moves were a sign of major trouble brewing. Trump himself alluded to the worries: “The bond market is very tricky. I was watching it, but if you look at it now, it’s it’s beautiful. The bond market right now is beautiful, but yeah, I saw last night where people were getting a little queasy.”U.S. benchmark bonds stabilized following the move on tariffs.Meanwhile, oil prices initially rose. But they fell again on Thursday, with markets fearful over what the U.S.-China trade war means for global growth.Investors also remain concerned over the wild unpredictability of Washington policymaking, and the fact that a blanket import tariff of 10% largely remains in place. International benchmark Brent crude was down over 1% in early morning trade.