Trump's tariffs latest: Asia shares jump as US stocks soar after Trump pauses most tariffs

The jump came as investors welcomed US President Donald Trump’s decision to back off on most of his tariffs.

Analysts had expected the regional comeback given that US stocks had one of their best days in history on a euphoric Wall Street on Wednesday, where investor hopes had run high that Mr Trump would tone down the tariffs.

On Thursday, Japan’s benchmark Nikkei 225 jumped 8.8% in morning trading to 34,510.86, zooming upward as soon as trading began.

Australia’s S&P/ASX 200 soared 5.1% to 7,748.00. South Korea’s Kospi gained 5.2% to 2,412.80.

Hong Kong and Shanghai markets were set to open soon. The Hang Seng index has fallen considerably in the last five days, and could be set for a rebound like the other regional indexes.

Stephen Innes, managing partner at SPI Asset Management, called the reaction “from fear to euphoria”.

“It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Mr Trump has kept.

On Wall Street, the S&P 500 surged 9.5%, an amount that would count as a good year for the market.

It had been sinking earlier in the day on worries that Mr Trump’s trade war could drag the global economy into a recession. But then came the posting on social media that investors worldwide had been waiting and wishing for.

“I have authorised a 90 day PAUSE,” Mr Trump said, after recognising the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.

Treasury secretary Scott Bessent later told reporters that Mr Trump was pausing his so-called “reciprocal” tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.

China was a huge exception, though, with Mr Trump saying tariffs are going up to 125% against its products.

That raises the possibility of more swings ahead that could stun financial markets.

The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage. US stocks are also still below where they were just a week ago, when Mr Trump announced worldwide tariffs on what he called “Liberation Day”.

But on Wednesday, at least, the focus on Wall Street was on the positive.

The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%. The Nasdaq composite leaped 12.2%.

The S&P 500 had its third-best day since 1940.