Asian stocks zoom in early trade as hopes of Trump tariff negotiations gain pace

Leading the rebound was Japan’s Nikkei 225, up 5.6 per cent, with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer tasked with leading trade negotiations with US ally Tokyo.

American business leaders have also begun speaking out about the damage to the economy and financial markets that could be wrought by President Donald Trump’s global trade war. JPMorgan Chase CEO Jamie Dimon issued a warning on Monday that Trump’s sweeping tariffs could spark inflation and push the US economy towards a slowdown.

Trump, though, dug in his heels over China, even promising 50 per cent additional levies if Beijing does not withdraw retaliatory tariffs on the US. Beijing said on Tuesday it will never accept the “blackmail nature” of US threats.

But, on Tuesday’s morning trade, Hong Kong’s Hang Seng climbed 1.7 per cent. Mainland Chinese blue chips added 0.6 per cent.

Yuan, the Chinese currency, has weakened to 7.36 per dollar in the offshore market, the weakest in two months.
“Importantly, a little ray of sunshine is starting to emerge that gives hope that the US is genuinely open to trade negotiations, … the most significant being Japan with Treasury Secretary Bessent,” said Tapas Strickland, head of market economics, National Australia Bank.

Strickland, however, noted volatility remains extremely elevated, with the “rare event” of the VIX index, which tracks market volatility, climbing to 60 overnight.

South Korea’s KOSPI added 1.3 per cent and Australia’s equity benchmark gained 1 per cent.

Taiwan’s equity benchmark though sank 3 per cent, which followed its worst day ever on Monday, when it tumbled 10 per cent. The major semiconductor producer faces a 32 per cent duty from Washington.

STOXX 50 futures in Europe rose 2.2 per cent.

At home in US, S&P 500 futures rose 0.9 per cent, after the cash index ended a wild session with a 0.2 per cent loss on Monday that saw huge swings through the day.