Asian Markets Rise as Investors Weigh US Tariff Developments

Asian stock markets mostly traded higher on Wednesday, following gains on Wall Street, as investors reacted to expectations that upcoming US tariffs under President Donald Trump may be less severe than initially feared.

Key Market Movements

• Australia’s S&P/ASX 200 gained 0.71%, closing at 7,999.

• Japan’s Nikkei 225 rose 0.65% to 38,027.29, while the Topix added 0.55%, ending at 2,812.89.

• South Korea’s Kospi climbed 1.08% to 2,643.94, with the small-cap Kosdaq rising 0.73% to 716.48.

• Thailand’s SET Index increased by 0.62% after Prime Minister Paetongtarn Shinawatra survived a no-confidence vote.

• Hong Kong’s Hang Seng Index advanced 0.60% to 23,483.32, while the Hang Seng Tech Index was up 0.61%.

• Mainland China’s CSI 300, however, edged down 0.33% to 3,919.36.

Market optimism was driven by reports from The Wall Street Journal and Bloomberg, which suggested that the White House’s planned tariffs, set for April 2, would be narrower in scope than previously anticipated. Additionally, Trump indicated some flexibility in his approach, raising hopes that the impact on global trade might be limited.

Despite the positive market response, some analysts warn that US consumers remain cautious. A report by Morning Consult noted that inflation concerns and labor market risks could lead to reduced spending across all income levels.

In the US, stock futures remained relatively stable after the S&P 500 posted a marginal gain, marking its third consecutive positive session.

• S&P 500 rose 0.16% to 5,776.65.

• Nasdaq Composite gained 0.46%, closing at 18,271.86.

• Dow Jones Industrial Average edged up by 4.18 points (0.01%) to 42,587.50.

Looking ahead, investors are awaiting key economic data, including reports on US economic growth, personal spending, and durable goods orders, which could provide further insights into the strength of the US economy.

Beyond immediate tariff concerns, analysts see investment opportunities in China’s consumer sector. Aberdeen’s Pruksa Iamthongthong highlighted growth in domestic tourism and delivery services, while Morgan Stanley raised its index targets for China’s markets, citing strong corporate earnings and economic stability.

CNBC and US News & World Report contributed to this report.