Asia-Pacific Markets Rise on Tariff Pause amid Economic Warnings

Asia-Pacific markets rose following Donald Trump’s decision to pause tariffs on Mexico and Canada, with Hong Kong’s Hang Seng index up 2.83%, Japan’s Nikkei 225 increasing by 0.72%, South Korea’s Kospi gaining 1.13%, and India’s Nifty 50 rising by 1.19%. In reaction to U.S. tariffs on its exports, China retaliated by imposing tariffs of up to 15% on U.S. imports, including coal and crude oil, while the U.S. initiated an additional 10% tariff on all Chinese imports. In the U.S., major stock indices closed lower, with the Dow Jones Industrial Average down 122.75 points (0.28%) at 44,421.91, the S&P 500 falling 0.76% to 5,994.57, and the Nasdaq Composite dropping 1.2% to 19,391.96. KKR raised its tender offer for Fuji Soft by 4.2% to 9,850 yen per share, competing against Bain Capital, while Japanese automakers like Honda and Toyota rebounded after the tariff suspension, though Mitsubishi Motors’ shares plunged over 15% due to a profit forecast cut. Morgan Stanley economists warned that Trump’s tariff plans could hinder economic growth and raise inflation, predicting a potential increase in inflation of 0.3 to 0.6 percentage points and a decrease in real GDP growth by 0.7 to 1.1 percentage points over the next 3-4 quarters.

Source: CNBC