TOKYO — Global markets experienced a surge on Thursday, with Japan’s key index climbing over 9%, as investors responded positively to U.S. President Donald Trump’s decision to temporarily halt significant tariff increases for 90 days, although this did not include China.
In early trading, Germany’s DAX initially rose by 5.6% to reach 20,776.76, while France’s CAC 40 in Paris increased by 5.4% to 7,235.21. The UK’s FTSE 100 also saw a significant gain of 4.0%, reaching 7,983.37.
U.S. futures showed a slight decrease, and oil prices also fell. Chinese stocks experienced more modest gains due to the continued increases in tariffs being imposed by both sides on each other’s exports.
Futures for the S&P 500 decreased by 2.0%, while those for the Dow Jones Industrial Average edged down by 1.6%.
Analysts had anticipated the global rebound, considering that U.S. stocks had experienced one of their strongest days ever on Wednesday as investors expressed their relief regarding Trump’s decision.
“Everything remains highly volatile because Donald Trump’s actions are unpredictable. This creates significant uncertainty in the market. The risk of recession has not diminished,” stated Francis Lun, chief executive of Geo Securities.
In Asia, Japan’s Nikkei 225 index jumped by 9.1% to close at 34,609.00, showing strong upward movement from the start of trading.
Australia’s S&P/ASX 200 increased sharply by 4.5% to 7,709.60. South Korea’s Kospi rose by 6.6% to 2,445.06. Hong Kong’s Hang Seng gained 2.1% to reach 20,681.78. The Shanghai Composite increased by 1.2% to 3,223.64.
Investors transitioned “from fear to euphoria,” according to Stephen Innes, managing partner at SPI Asset Management, in a commentary.
“It is now a manageable risk, particularly as global recession bets are unwound, and most Asian exporters experience significant relief,” he noted, referring to the tariffs on China, which Trump has maintained.
“I have authorized a 90-day PAUSE,” Trump stated, mentioning that over 75 countries are engaged in trade negotiations and are not retaliating against his recent tariff increases. China was a major exception, with Trump announcing that tariffs on its products would increase to 125%.
In energy trading, U.S. benchmark crude oil fell by $1.62 to $60.73 per barrel. Brent crude, the international benchmark, decreased by $1.67 to $63.81 per barrel.
In currency trading, the U.S. dollar weakened to 146.37 Japanese yen from 147.38 yen. The euro’s value rose to $1.1038, up from $1.0954.