Asian stock markets rallied on Thursday after U.S. President Donald Trump announced a 90-day pause on tariffs for 75 countries, including India. The move offered a temporary reprieve to global investors amid intensifying trade tensions between the U.S. and China.
Japan’s Nikkei 225 index surged by more than 8.34%, Taiwan’s weighted index climbed over 9%, and South Korea’s KOSPI jumped over 5%. Hong Kong’s Hang Seng index also saw gains of around 4%.
Indian markets, however, remained closed on Thursday in observance of the Mahavir Jayanti holiday.
The positive sentiment across Asia followed Trump’s decision to delay new tariffs for countries that have not retaliated against U.S. trade policies and are currently in talks with American trade officials. India is among the countries benefitting from this 90-day tariff relief.
In contrast, tensions with China escalated further. On Wednesday, Trump announced an immediate increase in tariffs on Chinese goods to 125%, citing Beijing’s “lack of respect” for global markets. This came in response to China raising its own tariffs on U.S. goods from 34% to 84%, effective April 10.
On his social media platform Truth Social, Trump explained the dual approach: punishing China with steep tariffs while rewarding cooperative nations with reduced rates. “I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he wrote.
While the trade war continues to cast uncertainty, Thursday’s rally reflected investor optimism that ongoing negotiations could ease tensions and stabilize global markets in the near term.