Market Update
China Indexes Remain Under Pressure Amid Rapidly Deteriorating U.S.-China Relations
Li Chen
11 Apr, 2025
Hong Kong
Stocks in China and Hong Kong extended their weekly losses amid rapidly escalating trade tensions between the U.S. and China.
The Hang Seng index fell as much as 0.9% but recovered in the final hour of trading, and the CSI 300 index rebounded from a loss of 0.5%.
For the week to Thursday, the Hang Seng index fell 10%, the largest weekly decline since the fall of 13.3% in the final week of October 2008, and the index extended its losses to the fifth consecutive week.
Chinese market indexes slumped after the U.S. president announced stiff tariffs on imports from all countries and levied its maximum import tax on Chinese goods.
Earlier in the week, the Trump administration paused so-called reciprocal tariffs on all countries but ramped up cumulative tariffs on China to 154%, prompting Beijing to announce its retaliatory tariffs of 84%.
China is set to announce additional tariffs on U.S. goods and raise barriers for U.S. service providers amid rapidly deteriorating relationships between the two largest economies in the world.
In addition, China-controlled entities stepped up their purchase of equities, and more than 100 companies announced stock buybacks totaling $2.7 billion.
China Indexes and Stocks
The Hang Seng index advanced 0.9% to 20,865.32, and the mainland-focused CSI 300 index added 0.2% to 3,740.38.
Alibaba Group Holding edged up 0.6% to HK 3,740.36, Tencent Holdings advanced 1.4% to HK 3,740.36, and Baidu Inc. added 1.5% to HK 80.75.
BYD gained 6.7% to HK 368.60, Li Auto Inc. jumped 7.5% to HK 91.45, and Xpeng advanced 9.4% to HK 77.90.
Wall Street Stocks and Bonds Face Hurdles as Trump Administration Suffers Credibility Gap
Barry Adams
10 Apr, 2025
New York City
Stock market indexes on Wall Street traded down amid worries that the Trump administration's trade policy shifts may have done the damage that could be difficult to reverse in the near term.
The S&P 500 index decreased 1.2%, and the Nasdaq Composite declined 1.8% as investors take a sober view of the rosy projections promoted by the White House advisors.
The persistent sell-off pushed the 10-year Treasury yields above 4.5% and the 30-year yield closer to 5.0%.
In addition, the Treasury officials signaled that the upcoming treasury bond auctions may not attract enough interest from foreign buyers, as trading partners step up their retaliation to reciprocal tariffs.
The bond and stock market sell-off and sharp rebuke from leading business leaders forced the U.S. president to announce a pause on tariffs and accept a rare defeat.
Despite the suspension of the reciprocal tariffs for three months, the Trump administration has kept a 10% universal tariff on all imports, with shipments from Mexico and Canada attracting as much as 25% tariffs.
The sharp escalation in tariffs, from 2% to 10%, is a large supply shock to the economy, which will negatively impact consumer spending.
In addition, a sharp increase in total tariffs to 125% on Chinese goods is also going to contribute to inflationary forces.
In the months ahead, inflation is likely to surge to as high as 6% and could possibly go even higher, as tariffs seep deeper into the economy and price increases in automobiles, food products, and electronic goods take effect on new shipment arrivals.
Moreover, confidence is deeply shaken in the Trump administration's ability to navigate the economy to a sustainable annual growth of over 2%, as the policy unpredictability adds to market anxieties.
Bond and stock investors are going to demand deeper discounts because of the chaotic and unpredictable nature of the Trump administration, known as Trump.
The wild ride in the bond market ahead of the start of the reciprocal tariffs was prompted after the holders of the U.S. Treasury bonds in Japan and China trimmed their holdings.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 2.2% to 5,335.61, the Nasdaq Composite edged down 2.7% to 16,652.85, and the Russell 2000 index was down 2.8% to 1,860.30.
The yield on 2-year Treasury notes edged lower to 3.86%, 10-year Treasury notes decreased to 4.35%, and 30-year Treasury bonds advanced to 4.81%.
WTI crude oil decreased $2.28 to $60.08 a barrel, and natural gas prices edged lower by $0.14 to $3.67 a thermal unit.
Gold increased by $39.34 to 3,125.25 an ounce, and silver edged up by $0.10 to $31.02.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 1.15 to 101.75 and traded at a two-year high.
U.S. Movers
Delta Air Lines declined 4.3% to $44.23 after the company announced better-than-expected quarterly results and pulled its annual outlook amid the weakness in international bookings.
Costco Wholesale Corp. declined 0.5% to $960.87, and the membership warehouse club operator reported better-than-expected monthly sales.
Sales in March climbed to $25.51 billion from $23.48 billion a year ago, an increase of 8.6%.
Net sales for the first 31 weeks were $158.87 billion, an increase of 8.3% from $146.64 billion a year earlier.
Comparable sales in March rose 6.4%, and in the 31-week period they were up 6.1%, and e-commerce sales were up 16.2% and 16.8%, respectively.
Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were up 9.1% in March and up 8.3% in the 31 weeks to April 6, while e-commerce sales increased by 17.5% and by 17.7%, respectively.
Constellation Brands declined 2.4% to $178.95 after the company's net income swung to a loss in the fiscal fourth quarter ending in March.
The distributor of alcoholic beverages said sales increased to $2.31 billion from $2.30 billion, net income swung to a loss of $375.3 million from a profit of $392.4 million, and diluted loss per share was $2.09 compared to a profit of $2.14 a year ago.
Wall Street Stocks and Bonds Face Hurdles as Trump Administration Suffers Cre
Barry Adams
10 Apr, 2025
New York City
Stock market indexes on Wall Street traded down amid worries that the Trump administration's trade policy shifts may have done the damage that could be difficult to reverse in the near term.
The S&P 500 index decreased 1.2%, and the Nasdaq Composite declined 1.8% as investors take a sober view of the rosy projections promoted by the White House advisors.
The persistent sell-off pushed the 10-year Treasury yields above 4.5% and the 30-year yield closer to 5.0%.
In addition, the Treasury officials signaled that the upcoming treasury bond auctions may not attract enough interest from foreign buyers, as trading partners step up their retaliation to reciprocal tariffs.
The bond and stock market sell-off and sharp rebuke from leading business leaders forced the U.S. president to announce a pause on tariffs and accept a rare defeat.
Despite the suspension of the reciprocal tariffs for three months, the Trump administration has kept a 10% universal tariff on all imports, with shipments from Mexico and Canada attracting as much as 25% tariffs.
The sharp escalation in tariffs, from 2% to 10%, is a large supply shock to the economy, which will negatively impact consumer spending.
In addition, a sharp increase in total tariffs to 125% on Chinese goods is also going to contribute to inflationary forces.
In the months ahead, inflation is likely to surge to as high as 6% and could possibly go even higher, as tariffs seep deeper into the economy and price increases in automobiles, food products, and electronic goods take effect on new shipment arrivals.
Moreover, confidence is deeply shaken in the Trump administration's ability to navigate the economy to a sustainable annual growth of over 2%, as the policy unpredictability adds to market anxieties.
Bond and stock investors are going to demand deeper discounts because of the chaotic and unpredictable nature of the Trump administration, known as Trump.
The wild ride in the bond market ahead of the start of the reciprocal tariffs was prompted after the holders of the U.S. Treasury bonds in Japan and China trimmed their holdings.
U.S. Movers
Delta Air Lines declined 4.3% to $44.23 after the company announced better-than-expected quarterly results and pulled its annual outlook amid the weakness in international bookings.
Costco Wholesale Corp. declined 0.5% to $960.87, and the membership warehouse club operator reported better-than-expected monthly sales.
Sales in March climbed to $25.51 billion from $23.48 billion a year ago, an increase of 8.6%.
Net sales for the first 31 weeks were $158.87 billion, an increase of 8.3% from $146.64 billion a year earlier.
Comparable sales in March rose 6.4%, and in the 31-week period they were up 6.1%, and e-commerce sales were up 16.2% and 16.8%, respectively.
Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were up 9.1% in March and up 8.3% in the 31 weeks to April 6, while e-commerce sales increased by 17.5% and by 17.7%, respectively.
Constellation Brands declined 2.4% to $178.95 after the company's net income swung to a loss in the fiscal fourth quarter ending in March.
The distributor of alcoholic beverages said sales increased to $2.31 billion from $2.30 billion, net income swung to a loss of $375.3 million from a profit of $392.4 million, and diluted loss per share was $2.09 compared to a profit of $2.14 a year ago.
U.S. Movers: Constellation Brands, Costco, Delta Air Lines
Scott Peters
10 Apr, 2025
New York City
Costco Wholesale Corp. gained 0.1% to $966.04 after the wholesale retailer reported an 8.6% increase in net sales for the month of March.
Sales climbed to $25.51 billion from $23.48 billion a year ago.
Net sales for the first 31 weeks were $158.87 billion, an increase of 8.3% from $146.64 billion a year earlier.
Comparable sales in March were up 6.4%, and in the 31-week period they were up 6.1%, and e-commerce sales were up 16.2% and 16.8%, respectively.
Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were up 9.1% in March and up 8.3% in the 31 weeks to April 6, while e-commerce sales increased by 17.5% and by 17.7%, respectively.
Constellation Brands Inc. dropped 3.5% to $177.00 after the producer of beer, wine, and spirits reported results for the fiscal fourth quarter of 2025 ending in February.
Sales increased to $2.31 billion from $2.30 billion, net income swung to a loss of $375.3 million from a profit of $392.4 million, and diluted loss per share was $2.09 compared to a profit of $2.14 a year ago.
Sales for the full year edged up to $10.96 billion from $10.71 billion, net income swung to a loss of $81.4 million from a profit of $1.73 billion, and diluted loss per share was 45 cents compared to a profit of $9.39 a year earlier.
The company guided 2026 net sales to decrease by 2% or up 1%, as beer sales remain flat to up 3%, and wine and spirits sales go down between 20% and 17%.
The alcohol beverage distributor estimated earnings per share in 2026 between $12.33 and $12.63, compared to a loss of 45 cents a year ago.
Comparable earnings per share in 2026 are estimated to be between $12.60 and $12.90, compared to $13.78 a year earlier.
Delta Air Lines Inc. traded flat at $44.27 after the airline company reported results for the March quarter of 2025.
Total operating revenue climbed to $14.04 billion from $13.75 billion, net income surged to $240 million from $37 million, and diluted earnings per share rose to 37 cents from 6 cents a year ago.
The company guided second quarter 2025 revenue to be down 2% to up 2%, compared to $16.7 billion a year earlier, and earnings per share between $1.70 and $2.30, compared to $2.01 in the same quarter a year ago.
The operating margin is estimated to be between 11% and 14%, compared to 14.7% a year earlier.
U.S. Movers: Constellation Brands, Costco, Delta Air Lines
Scott Peters
10 Apr, 2025
New York City
Costco Wholesale Corp. gained 0.1% to $966.04 after the wholesale retailer reported an 8.6% increase in net sales for the month of March.
Sales climbed to $25.51 billion from $23.48 billion a year ago.
Net sales for the first 31 weeks were $158.87 billion, an increase of 8.3% from $146.64 billion a year earlier.
Comparable sales in March were up 6.4%, and in the 31-week period they were up 6.1%, and e-commerce sales were up 16.2% and 16.8%, respectively.
Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were up 9.1% in March and up 8.3% in the 31 weeks to April 6, while e-commerce sales increased by 17.5% and by 17.7%, respectively.
Constellation Brands Inc. dropped 3.5% to $177.00 after the producer of beer, wine, and spirits reported results for the fiscal fourth quarter of 2025 ending in February.
Sales increased to $2.31 billion from $2.30 billion, net income swung to a loss of $375.3 million from a profit of $392.4 million, and diluted loss per share was $2.09 compared to a profit of $2.14 a year ago.
Sales for the full year edged up to $10.96 billion from $10.71 billion, net income swung to a loss of $81.4 million from a profit of $1.73 billion, and diluted loss per share was 45 cents compared to a profit of $9.39 a year earlier.
The company guided 2026 net sales to decrease by 2% or up 1%, as beer sales remain flat to up 3%, and wine and spirits sales go down between 20% and 17%.
The alcohol beverage distributor estimated earnings per share in 2026 between $12.33 and $12.63, compared to a loss of 45 cents a year ago.
Comparable earnings per share in 2026 are estimated to be between $12.60 and $12.90, compared to $13.78 a year earlier.
Delta Air Lines Inc. traded flat at $44.27 after the airline company reported results for the March quarter of 2025.
Total operating revenue climbed to $14.04 billion from $13.75 billion, net income surged to $240 million from $37 million, and diluted earnings per share rose to 37 cents from 6 cents a year ago.
The company guided second quarter 2025 revenue to be down 2% to up 2%, compared to $16.7 billion a year earlier, and earnings per share between $1.70 and $2.30, compared to $2.01 in the same quarter a year ago.
The operating margin is estimated to be between 11% and 14%, compared to 14.7% a year earlier.
Europe Movers: Barry Callebaut, Tesco
Inga Muller
10 Apr, 2025
Frankfurt
Barry Callebaut AG dropped 1.9% to CHF 1.055 after the Swiss cocoa processor and chocolate maker announced results for the six-month period ending in February.
Revenue edged up to CHF 1.14 billion from CHF 1.131 billion, net profit slumped to CHF 77.93 million from CHF 235.49 million, and diluted earnings per share fell to CHF 14.20 from CHF 42.87 a year ago.
Sales volume amounted to 1,138,524 tons in the first six months of fiscal 2023-2024, an increase of 0.7%, as growth was 1% in the second quarter amid a challenging operating environment and higher cocoa prices.
“Demand for cocoa powder remained robust, largely driven by Asia with particular strength in India, Indonesia, and China,” the company said in a release to investors.
Cocoa butter demand was impacted in Asia, Latin America, and North America, while other regions saw positive growth.
“For cocoa liquor, positive growth for Eastern Europe, Middle East Africa, and Latin America was offset by lower demand in Asia, Western Europe, and North America,” the company added in the statement.
Volume growth was positive in most global chocolate regions, led by growth in Latin America, particularly in Brazil.
Tesco Plc dropped 0.2% to 334.40 pence after the UK-based food retailer reported preliminary results for 2024 ending in February.
Revenue edged up to £69.92 billion from £68.19 billion, profit jumped to £1.63 billion from £1.19 billion, and diluted earnings per share rose to 23.51 pence from 16.56 pence a year ago.
Same-store sales declined by 1.8%, reflecting a continuing decline in the tobacco market and weakness in parts of the fast-food market serviced by Best Food Logistics, while the core retail and catering businesses grew despite a challenging market backdrop.
The company paid a dividend of 13.70 pence per share, compared to 12.10 pence per share in the previous year.
Tesco proposed a final dividend of 9.45 pence per share, payable on June 27 to shareholders on record as of May 16.
Europe Movers: Barry Callebaut, Tesco
Inga Muller
10 Apr, 2025
Frankfurt
Barry Callebaut AG dropped 1.9% to CHF 1.055 after the Swiss cocoa processor and chocolate maker announced results for the six-month period ending in February.
Revenue edged up to CHF 1.14 billion from CHF 1.131 billion, net profit slumped to CHF 77.93 million from CHF 235.49 million, and diluted earnings per share fell to CHF 14.20 from CHF 42.87 a year ago.
Sales volume amounted to 1,138,524 tons in the first six months of fiscal 2023-2024, an increase of 0.7%, as growth was 1% in the second quarter amid a challenging operating environment and higher cocoa prices.
“Demand for cocoa powder remained robust, largely driven by Asia with particular strength in India, Indonesia, and China,” the company said in a release to investors.
Cocoa butter demand was impacted in Asia, Latin America, and North America, while other regions saw positive growth.
“For cocoa liquor, positive growth for Eastern Europe, Middle East Africa, and Latin America was offset by lower demand in Asia, Western Europe, and North America,” the company added in the statement.
Volume growth was positive in most global chocolate regions, led by growth in Latin America, particularly in Brazil.
Tesco Plc dropped 0.2% to 334.40 pence after the UK-based food retailer reported preliminary results for 2024 ending in February.
Revenue edged up to £69.92 billion from £68.19 billion, profit jumped to £1.63 billion from £1.19 billion, and diluted earnings per share rose to 23.51 pence from 16.56 pence a year ago.
Same-store sales declined by 1.8%, reflecting a continuing decline in the tobacco market and weakness in parts of the fast-food market serviced by Best Food Logistics, while the core retail and catering businesses grew despite a challenging market backdrop.
The company paid a dividend of 13.70 pence per share, compared to 12.10 pence per share in the previous year.
Tesco proposed a final dividend of 9.45 pence per share, payable on June 27 to shareholders on record as of May 16.
European Markets Soar 4% Tracking Gains On Wall Street, Bond Yields Advance
Bridgette Randall
10 Apr, 2025
London
Stock market indexes in Europe soared, tracking gains on Wall Street in the previous session after the U.S. president announced a dramatic U-turn on his widely promoted trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London roared back and gained between 5% and 7%, as trade tensions between the European Union and the U.S. eased, for now.
Donald J. Trump announced the pause of reciprocal tariffs on all imports only hours after they went into effect.
However, the Trump administration slapped additional tariffs on China, increasing the total to 125%.
The base tariffs of 10% will remain in place on all other imports, except a 25% levy on shipments from Mexico and Canada that are not compliant with the U.S.-Mexico-Canada accord.
European stock markets advanced, bond yields edged higher, and the euro and the pound retained an upward bias as the dollar continued to lose ground.
Donald Trump was forced to announce the halting of steep tariffs on key trading partners and other exporting nations after wild swings in the bond market raised worries that the upcoming bond auction is likely to fail amid weak interest from foreign central banks.
Central banks of key trading partners, including Canada, Japan, the European Union, and China, are key buyers of the U.S. dollar-denominated debt issued by the federal government.
The sharp escalation in trade tensions played a key role in convincing foreign buyers of U.S. debts, which provides critical capital to finance the U.S. federal government deficit.
Europe Indexes and Yields
The DAX index increased by 7.1% to 21,062.83, the CAC-40 index edged higher 6.8% to 7,329.46, and the FTSE 100 index advanced by 4.6% to 8,029.37.
Bond yields advanced after investors dialed down on a rate cut expectations after the next policy meeting ending on April 17.
The yield on 10-year German bonds inched higher to 2.69%, French bonds increased to 3.44%, the UK gilts moved down to 4.75%, and Italian bonds edged lower to 3.88%.
The euro increased to $1.10; the British pound was higher at $1.29; and the U.S. dollar was lower and traded at 85.13 Swiss cents.
Brent crude decreased $1.54 to $63.94 a barrel, and the Dutch TTF natural gas was higher by €2.38 to €35.84 per MWh.
Europe Movers
Banks, automobile makers, and consumer goods exporters led the gainers in trading.
Adidas jumped 11% to €206.0, Puma SE advanced 10.5% to €20.29, and Pandora AS advanced 11.1% to DKK 982.20.
Deutsche Bank jumped 9.1% to €19.59, UniCredit SpA advanced 9.4% to €47.59, UBS Group AG increased 7.2% to CHF 23.60, and BNP Paribas SA gained 8.4% to €69.25.
Mercedes Benz Group AG gained 4.9% to €49.0, BMW AG increased 5.5% to €67.02, and Porsche Automobil Holding SE added 3.3% to €32.46.
European Markets Soar 4% Tracking Gains On Wall Street, Bond Yields Advance
Bridgette Randall
10 Apr, 2025
London
Stock market indexes in Europe soared, tracking gains on Wall Street in the previous session after the U.S. president announced a dramatic U-turn on his widely promoted trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London roared back and gained between 5% and 7%, as trade tensions between the European Union and the U.S. eased, for now.
Donald J. Trump announced the pause of reciprocal tariffs on all imports only hours after they went into effect.
However, the Trump administration slapped additional tariffs on China, increasing the total to 125%.
The base tariffs of 10% will remain in place on all other imports, except a 25% levy on shipments from Mexico and Canada that are not compliant with the U.S.-Mexico-Canada accord.
European stock markets advanced, bond yields edged higher, and the euro and the pound retained an upward bias as the dollar continued to lose ground.
Donald Trump was forced to announce the halting of steep tariffs on key trading partners and other exporting nations after wild swings in the bond market raised worries that the upcoming bond auction is likely to fail amid weak interest from foreign central banks.
Central banks of key trading partners, including Canada, Japan, the European Union, and China, are key buyers of the U.S. dollar-denominated debt issued by the federal government.
The sharp escalation in trade tensions played a key role in convincing foreign buyers of U.S. debts, which provides critical capital to finance the U.S. federal government deficit.
Europe Indexes and Yields
The DAX index increased by 7.1% to 21,062.83, the CAC-40 index edged higher 6.8% to 7,329.46, and the FTSE 100 index advanced by 4.6% to 8,029.37.
Bond yields advanced after investors dialed down on a rate cut expectations after the next policy meeting ending on April 17.
The yield on 10-year German bonds inched higher to 2.69%, French bonds increased to 3.44%, the UK gilts moved down to 4.75%, and Italian bonds edged lower to 3.88%.
The euro increased to $1.10; the British pound was higher at $1.29; and the U.S. dollar was lower and traded at 85.13 Swiss cents.
Brent crude decreased $1.54 to $63.94 a barrel, and the Dutch TTF natural gas was higher by €2.38 to €35.84 per MWh.
Europe Movers
Banks, automobile makers, and consumer goods exporters led the gainers in trading.
Adidas jumped 11% to €206.0, Puma SE advanced 10.5% to €20.29, and Pandora AS advanced 11.1% to DKK 982.20.
Deutsche Bank jumped 9.1% to €19.59, UniCredit SpA advanced 9.4% to €47.59, UBS Group AG increased 7.2% to CHF 23.60, and BNP Paribas SA gained 8.4% to €69.25.
Mercedes Benz Group AG gained 4.9% to €49.0, BMW AG increased 5.5% to €67.02, and Porsche Automobil Holding SE added 3.3% to €32.46.
Tokyo Stocks Roar After Trump Unexpectedly Halted Reciprocal Tariffs
Akira Ito
10 Apr, 2025
Tokyo
Japan's stock market indexes soared in Wednesday's trading after the U.S. president unexpectedly announced a pause of the forcefully promoted tariffs on all imports.
The Nikkei 225 Stock Average catapulted nearly 10%, and the broader TOPIX index advanced more than 8% after the mercurial U.S. president reversed the course and halted the implementation of stiff reciprocal tariffs on all nations, except China, for the next 90 days.
Trump still raised tariffs on China by an additional 50%, increasing the total to 125%.
The base tariff of 10% will remain in place on all other imports and 25% on shipments from Canada and Mexico that do not meet the rules laid out in the free trade agreement among the three neighbors.
Donald Trump was forced to announce the halting of steep tariffs on key trading partners and other exporting nations after wild swings in the bond market raised worries that the upcoming bond auction is likely to fail amid weak interest from foreign central banks.
The dramatic reversal in trade policy was brought about after the Treasury officials confirmed weak demand at the upcoming auction and the weakening of the U.S. dollar against the euro and other major currencies.
The Japanese yen closed at 144.67 against the U.S. dollar in Tokyo trading.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 9.6% to 34,609.0, and the broader TOPX advanced 8.1% to 2,539.40.
Mitsubishi UFJ Financial Group soared 11.7% to ¥1,711.00, Sumitomo Mitsui Financial Group advanced 6.4% to ¥3,221.00, and Mizuho Financial Group jumped 7.8% to ¥3,429.00.
Toyota Motor Company increased 7.5% to ¥2,543.00, Honda Motor Company advanced 8.4% to ¥1,348.50, and Nissan Motor Company jumped 9% to ¥339.70.
Seven & I Holdings Co. Ltd. increased 9.8% to ¥2,030.00, Takashimaya Co. Ltd. advanced 4.6% to ¥1,125.50, Isetan Mitsukoshi increased 3.7% to ¥1,125.50, and Fast Retailing Co. Ltd. gained 9.1% to ¥46,480.00.
Tokyo Stocks Roar After Trump Unexpectedly Halted Reciprocal Tariffs
Akira Ito
10 Apr, 2025
Tokyo
Japan's stock market indexes soared in Wednesday's trading after the U.S. president unexpectedly announced a pause of the forcefully promoted tariffs on all imports.
The Nikkei 225 Stock Average catapulted nearly 10%, and the broader TOPIX index advanced more than 8% after the mercurial U.S. president reversed the course and halted the implementation of stiff reciprocal tariffs on all nations, except China, for the next 90 days.
Trump still raised tariffs on China by an additional 50%, increasing the total to 125%.
The base tariff of 10% will remain in place on all other imports and 25% on shipments from Canada and Mexico that do not meet the rules laid out in the free trade agreement among the three neighbors.
Donald Trump was forced to announce the halting of steep tariffs on key trading partners and other exporting nations after wild swings in the bond market raised worries that the upcoming bond auction is likely to fail amid weak interest from foreign central banks.
The dramatic reversal in trade policy was brought about after the Treasury officials confirmed weak demand at the upcoming auction and the weakening of the U.S. dollar against the euro and other major currencies.
The Japanese yen closed at 144.67 against the U.S. dollar in Tokyo trading.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 9.6% to 34,609.0, and the broader TOPX advanced 8.1% to 2,539.40.
Mitsubishi UFJ Financial Group soared 11.7% to ¥1,711.00, Sumitomo Mitsui Financial Group advanced 6.4% to ¥3,221.00, and Mizuho Financial Group jumped 7.8% to ¥3,429.00.
Toyota Motor Company increased 7.5% to ¥2,543.00, Honda Motor Company advanced 8.4% to ¥1,348.50, and Nissan Motor Company jumped 9% to ¥339.70.
Seven & I Holdings Co. Ltd. increased 9.8% to ¥2,030.00, Takashimaya Co. Ltd. advanced 4.6% to ¥1,125.50, Isetan Mitsukoshi increased 3.7% to ¥1,125.50, and Fast Retailing Co. Ltd. gained 9.1% to ¥46,480.00.
China's Consumer and Producer Prices Fall Again, U.S. Targets China with Additional Tariffs
Li Chen
10 Apr, 2025
Hong Kong
China and Hong Kong stock market indexes advanced, and the yuan remained under pressure after the U.S. slapped additional tariffs on China.
The Hang Seng index advanced 2%, and the mainland-focused CSI 300 index gained 1% amid the escalating trade war between the U.S. and China.
The Trump administration imposed an additional 50% tariff on China, increasing the total to 124%, and paused for 90 days tariffs on all other imports.
The escalating trade tensions kept market gains in check after Wall Street indexes soared as much as 10% after the Trump administration announced yet another change in the trade policy.
Benchmark indexes in Japan soared 8.8%, in Australia jumped 4%, and in South Korea advanced 6%.
On the economic front, consumer price inflation fell 0.1% from a year ago in March, matching the decline for the January-February period.
Food prices decreased by 1.4%, while service prices increased by 0.3%, according to the statistics bureau.
Core inflation, which excludes food and energy prices. accelerated to 0.5% from 0.3% in the two-period month ending in February.
The decline in consumer prices was milder than 0.7% fall in February, but prices fell for the second consecutive month.
The producer price index declined for the 35th consecutive month and fell 2.5% in March, faster than 2.3% in the previous month.
The National Bureau of Statistics announced inflation updates in two separate reports on Wednesday.
The decline in inflation confirmed the ongoing deflation trend after consumer prices rose 0.2% in 2024 and matched the rate in the previous year.
China Indexes Stocks
The Hang Seng index soared 2.4% to 20,819.35, and the mainland-focused CSI 300 index advanced 1.3% to 3,733.59.
Li Auto soared 6.5% to HK $86.65, BYD rose 3.7% to HK $347.60, and Xpeng jumped 6.3% to $72.50.
Sunny Optical Technology Group advanced 6.4% to HK $63.0, Lenovo Group Ltd. rose 7.7% to HK $8.08, and SMIC advanced 3.5% to HK $44.75.
Alibaba Group Holding advanced 3.3% to HK $44.75, Tencent Holdings Ltd. gained 2.5% to HK $44.75, and JD.com advanced 5.5% to HK $44.75.
China's Consumer and Producer Prices Fall Again, U.S. Targets China with Additional T
Li Chen
10 Apr, 2025
Hong Kong
China and Hong Kong stock market indexes advanced, and the yuan remained under pressure after the U.S. slapped additional tariffs on China.
The Hang Seng index advanced 2%, and the mainland-focused CSI 300 index gained 1% amid the escalating trade war between the U.S. and China.
The Trump administration imposed an additional 50% tariff on China, increasing the total to 124%, and paused for 90 days tariffs on all other imports.
The escalating trade tensions kept market gains in check after Wall Street indexes soared as much as 10% after the Trump administration announced yet another change in the trade policy.
Benchmark indexes in Japan soared 8.8%, in Australia jumped 4%, and in South Korea advanced 6%.
On the economic front, consumer price inflation fell 0.1% from a year ago in March, matching the decline for the January-February period.
Food prices decreased by 1.4%, while service prices increased by 0.3%, according to the statistics bureau.
Core inflation, which excludes food and energy prices. accelerated to 0.5% from 0.3% in the two-period month ending in February.
The decline in consumer prices was milder than 0.7% fall in February, but prices fell for the second consecutive month.
The producer price index declined for the 35th consecutive month and fell 2.5% in March, faster than 2.3% in the previous month.
The National Bureau of Statistics announced inflation updates in two separate reports on Wednesday.
The decline in inflation confirmed the ongoing deflation trend after consumer prices rose 0.2% in 2024 and matched the rate in the previous year.
China Indexes Stocks
The Hang Seng index soared 2.4% to 20,819.35, and the mainland-focused CSI 300 index advanced 1.3% to 3,733.59.
Li Auto soared 6.5% to HK $86.65, BYD rose 3.7% to HK $347.60, and Xpeng jumped 6.3% to $72.50.
Sunny Optical Technology Group advanced 6.4% to HK $63.0, Lenovo Group Ltd. rose 7.7% to HK $8.08, and SMIC advanced 3.5% to HK $44.75.
Alibaba Group Holding advanced 3.3% to HK $44.75, Tencent Holdings Ltd. gained 2.5% to HK $44.75, and JD.com advanced 5.5% to HK $44.75.