Asian stock markets surged on Thursday, April 10, 2025, following an extraordinary rally on Wall Street after US President Donald Trump announced a 90-day pause on most of his recently imposed tariffs. The dramatic market recovery came after days of global market turmoil but maintained heightened tensions with China. Here are 10 key things to know about this significant market development:
1. Trump’s Tariff Pause Announcement
President Donald Trump announced a 90-day pause on Wednesday, April 9, for most countries affected by his “reciprocal tariffs” that had gone into effect earlier that week. The pause replaced the country-specific tariffs with a reduced 10% baseline tariff for all countries except China CNN. Treasury Secretary Scott Bessent explained that the pause was implemented due to the high volume of more than 75 countries seeking exemptions and negotiations CBS.
2. Historic US Market Rally
The tariff pause announcement triggered one of the most spectacular rallies in US stock market history. The Dow Jones Industrial Average skyrocketed 2,962.86 points (7.87%), while the S&P 500 surged 9.5% and the tech-heavy Nasdaq Composite soared 12.2% — its biggest one-day gain since January 3, 2001 Reuters. US stocks gained more than $1.8 trillion in market value in a single day WSJ.
3. Nikkei’s Dramatic Rebound
Japan’s benchmark Nikkei 225 led the Asian recovery with a spectacular gain of 8.8%, closing at 34,510.86 after gaining more than 2,000 points almost immediately after opening Times of India. This represented a dramatic turnaround from the previous day’s losses when the index had plummeted to an 18-month low of 31,136.58 CNBC.
4. Broad Asian Market Recovery
The rally extended across Asian markets with Hong Kong’s Hang Seng Index climbing 3.38% to close at 20,810.43 FX Empire, while mainland China’s Shanghai Composite edged up 1.5% to 3,232.86 despite facing heightened tariffs US News. South Korea’s Kospi gained 5.5% to 2,419.37, and Taiwan’s benchmark, heavily weighted with semiconductor companies, jumped nearly 6% Aljazeera.
5. China Targeted with Higher Tariffs
While most countries benefited from the tariff pause, Trump raised tariffs on Chinese imports to 125% from the 104% level that had just kicked in on Wednesday Reuters. This came after China had announced retaliatory tariffs of 84% on US goods, further escalating the US-China trade war NBC News.
6. Economic Impact on China
The escalation in tariffs is expected to significantly impact China’s economy. Goldman Sachs economists cut their 2025 growth forecast for China, and Bloomberg Economics estimated that US tariffs could damage as much as 3% of China’s GDP Bloomberg. Some analysts predict China could fail to meet its 5% growth target for 2025 The Guardian.
7. Currency Market Reactions
In currency markets, the US dollar rebounded against safe-haven currencies like the Japanese yen and Swiss franc following Trump’s announcement Reuters. Risk-sensitive currencies saw the strongest rebounds, led by the Australian dollar, while the Chinese yuan, which had hit a 19-month low earlier in the week, remained under pressure due to the heightened tariffs on China Aljazeera.
8. Sector Performance in Asian Markets
Tech companies across Asia experienced significant rebounds, particularly in Japan and South Korea, following the Nasdaq’s 12% gain in the US. Taiwan’s semiconductor industry, which had been severely impacted by earlier tariff fears, showed strong recovery Turkiye Today. However, Chinese battery manufacturers continued to face pressures from both domestic challenges and the heightened US tariffs Energy Connects.
9. Bond Market Concerns Persist
Despite the stock market rally, the US bond market continued to show signs of stress. Treasury yields jumped after Trump’s announcement, with the yield on two-year Treasuries jolting higher by as much as 30 basis points, the most intraday since 2009 Bloomberg. Reports suggest that growing alarm inside the Treasury Department over developments in the bond market was a central factor in Trump’s decision to pause the tariffs CNN.
10. Future Outlook and Negotiations
The 90-day tariff pause creates a window for negotiations, with many countries expected to seek permanent exemptions or reduced tariffs. However, US-China trade tensions appear set to intensify further The Guardian. Market analysts remain cautious about the long-term outlook, with Goldman Sachs forecasting only 0.5% US economic growth in 2025 despite the pause, and still seeing a 45% chance of recession within the next year Economic Times.
The dramatic market swings highlight the significant impact of trade policy on global financial markets and the broader economic outlook. While the tariff pause has brought immediate relief to most global markets, the escalation with China creates continued uncertainty for investors, particularly in sectors and regions heavily dependent on US-China trade relations.
