Saudi outperforms Gulf peers in early trade
Saudi Arabia’s stock market led most of its Gulf peers higher early on Thursday, tracking global shares, after U.S. President Donald Trump’s unexpected decision to temporarily suspend most of his recently imposed tariffs.
Trump on Wednesday announced a 90-day pause on many of his new duties, however, raised the tariff rate for China to 125 percent effective immediately, from the previously announced 104 percent that took effect earlier on Wednesday.
Saudi Arabia’s benchmark index jumped 4 percent, buoyed by a 3.8 percent rise in Al Rajhi Bank and a 3.9 percent increase in the country’s biggest lender Saudi National Bank.
Saudi Arabia has been hit by the minimum 10 percent tariff rate, which at present will remain in place.
Dubai’s main share index was up 2 percent, while the Abu Dhabi index climbed 1.3 percent.
Elsewhere, the Qatari benchmark advanced 2.5 percent.
European stocks surge
European shares surged on Thursday after U.S. President Donald Trump announced an immediate 90-day pause on tariffs for many trading partners, prompting a massive relief rally following a days-long market rout.
The suspension of punishing tariffs on dozens of countries came less than 24 hours after they kicked in. Still, the White House maintained a 10 percent blanket duty on almost all U.S. imports.
The pan-European STOXX 600 jumped 7.2 percent at 0709 GMT, after losing 12.5 percent since the U.S. reciprocal tariffs on April 2. Trade-sensitive Germany’s benchmark index rose 8.1 percent.
Trump, however, further ramped up pressure on China by hiking the tariff on Chinese imports to 125 percent from the 104 percent level that kicked in on Wednesday in retaliation for China’s announcement of an 84 percent levy on U.S. goods starting April 10.
South Korean shares log biggest jump
South Korean shares on Thursday posted their sharpest rally in more than five years as U.S. President Donald Trump hit a sudden pause on most tariffs.
The benchmark KOSPI added 151.36 points, or 6.6 percent, to close at 2,445.06, logging the biggest percentage jump since March 24, 2020.
On Wednesday, the blue-chip index fell to more than 17-month low as Trump’s tariffs, including 25 percent duties on imports from South Korea, took effect.
Earlier in the day, the “sidecar” rule was triggered a second time this week after Monday when futures fell sharply. The rule is activated when futures gain or lose more than 5 percent.
Meanwhile, in a stunning reversal, Trump on Wednesday announced a 90-day pause on the hefty duties imposed on dozens of trade partners, while raising the China duties to 125 percent.
The tariff reprieve has provided room for negotiations, South Korea’s top trade envoy Cheong In-kyo said, as the country seeks to reduce the duties through talks.
Japan’s Nikkei surges 9pc on relief
Japan’s Nikkei share average jumped 9 percent on Thursday as investors scooped up beaten-down stocks after U.S. President Donald Trump declared an immediate 90-day tariff pause for many countries.
The Nikkei rose 9.13 percent to 34,609 in its biggest daily gain since August 6, the day after the index fell in its biggest single-day rout since the 1987 Black Monday crash.
The broader Topix climbed 8.09 percent to 2,539.4.
“Investors bought back stocks on Thursday, wishing that they had not dumped stocks in the previous session,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
“But the rally also means that the market was too bearish about the impact of Trump’s tariffs,” Suzuki said.
In a stunning reversal, Trump said on Wednesday he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China, sending U.S. stocks rocketing.
China, HK stocks rise on hopes of trade negotiations
China and Hong Kong shares rose on Thursday, as investors downplayed the latest U.S. tariff increase on Chinese imports and pinned their hopes on talks between the world’s two largest economies and market and policy support from state firms.
China’s blue-chip CSI300 Index and the Shanghai Composite Index both rose 1.4 percent as of 0235 GMT. Hong Kong’s benchmark Hang Seng was up 3.5 percent.
The rise in Hong Kong shares also followed a 6 percent surge in Chinese internet companies listed on the U.S. market overnight after U.S. President Donald Trump temporarily cut the steep tariffs he had just imposed on dozens of other countries.
Trump at the same time escalated tariffs on China to 125 percent from the 104 percent level that just took effect on Wednesday.
“Investors believe the marginal effect of raising tariffs further from the existing level will shrink, as most Chinese exports to the U.S. have already been greatly affected,” UBS analysts said in a note to investors.
Indian benchmarks trim losses
Indian benchmark indexes trimmed losses on Wednesday after the Reserve Bank of India cut interest rates as expected to support growth, though global trade tensions continued to weigh on investor sentiment.
The Nifty 50 was down 0.38 percent at 22,451.35 at 10:06 a.m. IST while the BSE Sensex lost 0.24 percent to 74,046.13. The indexes were 0.6 percent lower ahead of the policy decision.
The RBI cut its key repo rate for the second consecutive time to combat sluggish economic growth, which is facing additional headwinds from U.S. tariffs. It also changed the monetary policy stance to “accommodative” from “neutral”.
U.S. President Donald Trump’s “reciprocal” tariffs on dozens of countries took effect on Wednesday, including massive 104 percent duties on Chinese goods, deepening his global trade war even as he prepared for negotiations with some nations.
Broad-based selling in Indian stocks persisted, with 12 of the 13 major sectors falling, and both smallcap and midcap stocks losing 1.3 percent each.