World markets rebounded after a stunning announcement by U.S. President Donald Trump to defer retaliatory tariffs for 90 days. The step, made against the backdrop of rising trade tensions, prompted a stunning stock market rally in the U.S. and Asia. Analysts witnessed a sharp shift in investor sentiment, touching record highs in benchmark indices.
US and Asian Markets Positive
When President Trump made public the short-term tariff suspension, U.S. stock markets had their best performance in decades. The Dow Jones Industrial Average increased 7.9%, the Nasdaq Composite surged 12.2%, and the S&P 500 Index increased 9.5%. These are the largest one-day gains for the Nasdaq since 24 years ago and the largest gain in the S&P 500 since the financial crisis of 2008.
Asian markets trailed this trend higher on Thursday. Japan's Nikkei Index rose 8.2%, Australia's ASX rose 4.7%, South Korea's KOSPI rose 4.9%, and Hong Kong's Hang Seng Index rose 2.8%. Taiwan's stock index recorded the highest increase among Asian markets, rising 9.2%. Shanghai Composite Index recorded a slight rise of 0.6%.
Indian Markets Remain Closed
As most international markets recovered, Indian share markets were closed on Thursday due to the Mahavir Jayanti public holiday. When the markets reopen, investors and analysts believe Indian markets will be in line with global sentiment, given the size of gains in the rest of Asia and the U.S.
Market Analysts React
Financial analysts give the markets' strong recovery credit to relief and optimism over future trade policy among investors. Suspension of tariffs for 90 days has removed short-term pressure on international value chains and export-oriented companies. Analysts note that it is only a short-term reprieve but pointed out that the move has injected some short-term confidence in markets.
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