Tokyo, Japan – As pedestrians crossed the bustling Shibuya crossing square in Tokyo, markets across Asia experienced an upward trend following Wall Street’s third consecutive day of gains. The rise was fueled by a surge in tech stocks, with investors closely monitoring developments in the trade climate amidst reports of a potential easing of tensions between the U.S. and China.
Reports surfaced that China is considering lifting its 125% tariff on certain U.S. goods, prompting optimism in the markets. In response, Hong Kong’s Hang Seng Index climbed 1.36%, while mainland China’s CSI 300 edged up 0.35%. Japan’s Nikkei 225 saw a 1.88% increase, and South Korea’s Kospi rose by 1.07%, with the country also making progress towards a trade deal with the U.S. However, Australian markets remained closed for a holiday.
Futures associated with the S&P 500 were up by 0.3%, with Nasdaq-100 futures gaining 0.4%. Meanwhile, Dow Jones Industrial Average futures held steady around the flatline. The positive momentum from Wall Street carried over into the Asian markets, as investors digested the strong performance of megacap tech stocks in the U.S.
The S&P 500 closed 2.03% higher, the Nasdaq Composite added 2.74%, and the Dow Jones Industrial Average, although weighed down by IBM’s 6.6% drop, still managed to climb 1.23%. Notable tech companies like Nvidia, Meta, Amazon, Tesla, and Microsoft all closed higher, contributing to the overall market gains for the third consecutive day.
Louis Navellier, chairman and founder of Navellier & Associates, noted that investors are growing more at ease with the uncertainty surrounding tariffs as corporate earnings reports come in. He also mentioned that the market appears to be anticipating a potential decrease in the current high tariffs imposed on Chinese imports. The overall sentiment among investors seems to be shifting towards a more positive outlook on the trade situation.
The developments in the trade climate, along with the strong performance of tech stocks, are driving market optimism and confidence. As investors continue to monitor the ongoing negotiations between the U.S. and China, the possibility of tariff reductions looms on the horizon, providing a ray of hope for the global markets.