Bonds Rise & Stock Rally Continues After a Changing Day – Asia Market Wrap

Asian equities rose the most in more than two years, as global financial markets recovered after Trump halted most of his sweeping reciprocal tariffs. Treasuries rebounded following a stormy session.

Shares in the region rose Thursday as the S&P 500 had its best day since the global financial crisis. While equity-index futures for Europe rose more than 7%, those for US equities fell, indicating that markets are still in turmoil. Yields on 10-year Treasuries declined after a 34 bps increase in the previous three days raised concerns about the health of the world’s largest debt market. Metals have ended the longest run of losses in 25 years.

Chinese equities rose on hopes of additional stimulus after Trump raised tariffs on the country to 125%. The country’s senior officials will gather Thursday to discuss new economic measures.

After global equity markets lost $10 trillion and US Treasuries fell, Trump promised a 90-day halt in the so-called reciprocal tariffs, which affected dozens of trading partners after midnight. However, he increased tariffs on China to 125%. That happened after the Asian nation retaliated by raising tariffs on US imports to 84%. Oil prices fell again as investors dealt with unexpected policy changes. Gold edged up.