Asian stock markets had a mixed session on Thursday after a rally on Wall Street, sparked by President Donald Trump’s more moderate stance on the Federal Reserve and trade with China.
Japan’s Nikkei 225 climbed 0.6% to 35,075.72, and Australia’s S&P/ASX 200 rose 0.8% to 7,983.00. Meanwhile, South Korea’s Kospi fell 0.3% to 2,517.83. Hong Kong’s Hang Seng dropped 1.2%, and China’s Shanghai Composite edged down 0.1%.
Tan Jing Yi of Mizuho Bank described recent developments as “headline turbulence,” warning that such uncertainty could harm global economies in the long term. “Sentiments swing from hopes of intense relief to inflicted economic gloom,” he said.
In the U.S., stocks rebounded strongly. The S&P 500 surged 1.7%, building on a large gain from Tuesday that reversed a steep drop earlier in the week. The Dow Jones added 419 points (1.1%), and the Nasdaq rose 2.5%.
Much of the volatility stems from uncertainty around Trump’s economic policies. However, markets found some comfort after Trump said he had “no intention” of firing the Federal Reserve Chair. This eased investor fears, as the Fed’s independence is crucial for long-term economic stability.
Trump also suggested that tariffs on Chinese imports—currently at 145%—could be lowered significantly. “It won’t be that high,” he stated. Investors are optimistic that ongoing negotiations with China might result in a more favorable trade deal.
U.S. Treasury Secretary Scott Bessent added to the positive outlook, saying, “There is an opportunity for a big deal here.”
Despite recent gains, analysts warn that markets will likely remain volatile, swayed by Trump’s shifting policies. “The market will more likely than not continue to be dictated by Trump’s latest whims regarding tariffs and trade,” said Tim Waterer of KCM Trade.
In the bond market, Treasury yields relaxed, with the 10-year yield slipping to 4.38% from 4.41%, after dipping as low as 4.26% earlier in the day.
Technology stocks led the rally. Nvidia jumped 3.9% after recent losses tied to U.S. restrictions on chip exports to China. Tesla climbed 5.4% after CEO Elon Musk said he would focus more on running the company, following disappointing profit results.
By the close, the S&P 500 added 88.10 points to reach 5,375.86. The Dow ended at 39,606.57, up 419.59, while the Nasdaq climbed 407.63 points to 16,708.05.
In commodities, U.S. crude rose by 3 cents to $62.30 a barrel, and Brent crude added 4 cents to $66.16. On the currency front, the dollar eased to 142.82 yen from 143.15, while the euro strengthened to $1.1335 from $1.1322.
