Asian stocks rise on tariff uncertainty
Regional markets gain as investors cut U.S. exposure and await Nvidia results
Asian stock markets rose as Wall Street futures and the dollar eased, prompted by renewed uncertainty over U.S. tariff signals that encouraged investors to reduce U.S. exposure and shift into regional equities. Markets were also focused on upcoming Nvidia results, viewed as a key test for confidence in the AI sector.
At the open, South Korea’s KOSPI jumped about 1.63% to 5,903.11, Taiwan’s TAIEX climbed roughly 1.6% to 34,140.5, and Indonesia’s Jakarta Composite rose 0.76% to 8,337.54, recovering after recent capital market reforms and an MSCI downgrade risk. Technology and export-linked stocks led gains, with semiconductor firms and auto manufacturers among the strongest performers as traders dialed back worst-case scenarios tied to trade tensions.
The rally followed earlier volatility after proposed U.S. tariff measures unsettled markets; investors took comfort from signs that exemptions or negotiations might limit broader disruption. A softer dollar and a weaker yen further supported Japanese exporters’ overseas earnings outlook. Commodity moves were mixed: oil held steady while industrial metals gained slightly, and some Asian government bond yields edged higher as risk appetite improved.
Market participants said the rebound reflected a mix of bargain hunting and hopes that diplomatic engagement will prevent a full-scale trade escalation. Still, analysts warned that clarity from Washington on tariff scope and exemptions is needed, and that potential retaliatory responses could quickly reverse gains. Chinese and other trade-reliant markets remained particularly sensitive to policy developments.
Investors were also weighing macro indicators, including inflation trends and central bank policy trajectories across the region, alongside corporate earnings. Stronger-than-expected results from some companies helped offset trade-related concerns, but the outlook hinges on how trade discussions proceed and how businesses adapt.
For now, Asian equities displayed resilience amid headline risk, with the path forward likely to be shaped by evolving U.S. trade policy and forthcoming corporate catalysts—most notably Nvidia—whose performance could influence sentiment across technology and AI-linked sectors.
