Asia-Pacific markets traded mostly higher on Wednesday, reflecting Wall Street’s gains amid expectations that U.S. President Donald Trump might implement softer-than-anticipated tariffs. This optimism comes as sources suggest the White House’s planned tariffs, set for April 2, will be narrower in scope. In Australia, the S&P/ASX 200 index rose 0.71% to close at 7,999.
Japan’s Nikkei 225 climbed 0.65% to 38,027.29, while the Topix added 0.55% to end at 2,812.89. South Korea’s Kospi index saw a 1.08% increase, concluding trading at 2,643.94. The small-cap Kosdaq traded 0.73% higher to close at 716.48.
Thailand’s SET Index rose 0.62% after Prime Minister Paetongtarn Shinawatra survived a no-confidence vote earlier in the day. Hong Kong’s Hang Seng Index rose 0.60% to 23,483.32, despite mainland China’s CSI 300 slipping 0.33% to 3,919.36. The Hang Seng Tech index, tracking the 30 largest technology companies listed in Hong Kong, increased by 0.61%.
Reports from The Wall Street Journal and Bloomberg indicate that the tariffs expected from the Trump administration might not be as broad as initially feared. This speculation comes as U.S. consumers show signs of financial strain ahead of the potential trade intensification, with indications they might reduce spending across various income brackets. U.S. stock futures showed little change following three consecutive days of gains.
Overnight in the U.S., all major averages closed higher, with the Dow Jones Industrial Average posting a 0.16% gain to close at 5,776.65.
Asia markets gain amid tariff hopes
The S&P 500 and Nasdaq Composite also saw increases, ending at 18,271.86 and 42,587.50, respectively.
Morgan Stanley raised its year-end targets for key Chinese stock indices, citing positive fourth-quarter earnings and a robust economic outlook. The bank increased its forecast for the Hang Seng Index to 25,800 points, the MSCI China Index to 83 points, and the CSI 300 to 4,220 points. In a move to limit Beijing’s advances in artificial intelligence and computing, the U.S. Department of Commerce added 80 organizations, including over 50 Chinese companies, to its “entity list.” This action restricts American firms from supplying these companies without government permits.
Aberdeen’s deputy head of Asia-Pacific equities, Pruksa Iamthongthong, identified investment opportunities in China’s evolving consumption patterns, highlighting domestic tourism and delivery services as key areas. She pointed to companies like Meituan, which are innovating with services such as drone-delivered bubble tea. Thailand’s Prime Minister Paetongtarn Shinawatra survived a no-confidence vote, despite opposition claims of undue influence from her father, former Prime Minister Thaksin Shinawatra.
The vote took place amid ongoing political tensions in the country. Contemporary Amperex Technology (CATL), the world’s largest electric vehicle battery producer, gained approval to list in Hong Kong in a deal expected to raise at least $5 billion, marking the largest IPO in Hong Kong in four years. Bank of Japan Governor Kazuo Ueda stated that the central bank would continue raising interest rates if economic conditions and inflation trends align with expectations.
He noted that Japan’s current high inflation is partly due to temporary factors like elevated import costs and food prices. Australia’s February inflation rate eased slightly to 2.4% year-on-year, falling from 2.5% in January and below Reuters’ economist expectations. The primary contributors to this annual movement were food, non-alcoholic beverages, alcohol, tobacco, and housing.
Capital Economics suggested this could prompt the Reserve Bank of Australia to cut rates by 25 basis points at its May meeting.
