Asia report: Markets climb as Trump reassures on Powell, China
Markets across the Asia-Pacific region climbed on Wednesday, buoyed by optimism that US-China trade tensions could ease following remarks from US president Donald Trump.
Hong Kong stocks led regional gains after Trump suggested that final tariffs on Chinese goods would not reach the previously floated 145%, though he emphasised they would not be entirely lifted.
His comments, coupled with reassurances that Federal Reserve chair Jerome Powell would not be removed before his term ends, lifted investor sentiment.
“In a familiar pattern with the Trump administration, market analysis often changes from one day to the next,” said TickMill market strategy partner Patrick Munnelly.
“Today, the mood is risk-on - Trump has clarified that he 'never intended' to remove Powell from the Federal Reserve.
“Additionally, his approach to trade with China has softened, indicating that tariffs 'will decrease significantly but won't reach zero’.”
Munnelly noted that, adding to the positive outlook, vice president JD Vance made promising remarks about a potential US-India trade agreement.
“In contrast to yesterday's decline in equities and the dollar - which saw gold and the yen rise - today's market action presents a brighter picture.
“After experiencing peak risk aversion that pushed USD-JPY down to 140 yesterday, it has rebounded, briefly touching 143 in the overnight session.
“The bond market saw a lackluster $69 billion 2-year US Treasury auction, with the clearing rate at 3.795%, a slight increase of 0.6 basis points from the market level.”
Most markets rise after Trump comments
In Hong Kong, the Hang Seng Index surged 2.37% to 22,072.62, driven by strong performances from Xiaomi, which rose 6.87%, BYD Electronic International, up 6.07%, and WuXi Biologics, which added 5.34%.
The positive momentum in Hong Kong was echoed in South Korea, where the Kospi 100 gained 1.7% to close at 2,510.25, led by a 14.29% jump in Hanmi Semiconductor and double-digit gains in LF Co and Cosmoam&T.
In Japan, the Nikkei 225 rose 1.89% to 34,868.63, while the broader Topix index climbed 2.06% to 2,584.32.
Shares of Konica Minolta soared 9.95%, Fujifilm Holdings advanced 8.73%, and Hino Motors gained 6.55%, reflecting robust investor enthusiasm.
Australia's S&P/ASX 200 added 1.33% to finish at 7,920.50, boosted by notable increases in Appen, Polynovo, and Seek.
In New Zealand, the S&P/NZX 50 rose 1.01% to 11,956.47, with Infratil, Spark New Zealand, and Fisher & Paykel Healthcare leading the rally.
China’s market performance was mixed - the Shanghai Composite dipped 0.1% to 3,296.36 amid sharp losses in Chifeng Jilong Gold Mining and Shanghai Lingyun Industries Development, both of which fell 10%.
However, the Shenzhen Component rose 0.67% to 9,935.80, providing a measure of support to mainland equities.
In currency markets, the dollar was last up 0.24% on the yen, trading at JPY 141.91, while it weakened 0.66% against the Aussie to AUD 1.5604, and retreated 0.26% from the Kiwi, changing hands at NZD 1.6710.
Oil prices were in the green, with Brent crude futures last up 1.19% on ICE at $68.24, and the NYMEX quote for West Texas Intermediate ahead 0.17% at $64.48.
Inflation subdued in Singapore as it enters election period
In economic news, Singapore's inflation remained subdued in March, with consumer prices rising 0.9% from a year earlier, matching February’s pace and marking the lowest level in over four years.
The reading came in below the 1.1% increase expected by economists in a Reuters poll, suggesting continued disinflationary pressures in the city-state.
The data was released as Singapore entered the official campaign period for its upcoming general election, scheduled for 3 May.
Candidates formally submitted their nominations on Wednesday, setting the stage for a brief but closely watched campaign.
The stable inflation figures may offer some relief to policymakers amid a politically sensitive period, as cost-of-living concerns remain a key issue for voters.
Reporting by Josh White for Sharecast.com.