Asian Stocks Rise Following Worst Day Recorded – Asia Market Wrap

Asia’s stocks rebounded after a historic loss, with Japan leading gains on optimism that it will receive priority in US trade talks. Treasuries rose following Monday’s severe selloff.

Benchmark indicators in Japan surged more than 5%, as did futures contracts in the US and Europe. Equities in Hong Kong and China rose after state-backed funds purchased assets and the central bank promised loans to help stabilise the market. Oil prices rose, while gold rose for the first time in four days. The Dollar fell against major counterparts.

Volatility has skyrocketed, with $10 trillion wiped off global equities since the US announced sweeping tariffs last week. As fears of a worldwide recession and an escalating trade war grew, investors clung to any signals of relief. For the time being, Trump has threatened to impose extra 50% tariffs on China while leaving the possibility of some conversations open.

Japanese stocks rose after Trump appointed two cabinet members to begin bilateral trade discussions following a call with PM Ishiba. Japan appears to be given priority over other US trading partners in tariff negotiations, putting Tokyo at the head of a long list of countries seeking to reduce taxes.