Asia report: Markets rise on news of US tariff exemptions

The exemptions, covering items such as smartphones, computers, and semiconductors, were detailed in guidance from US Customs and Border Protection released late on Friday.

“Asian stocks experienced a notable rise overnight, although the ongoing confusion regarding tariff implementations poses a continued risk,” said TickMill market strategy partner Patrick Munnelly.

“Market sentiment in Asian equities has been somewhat positive during the overnight trading session, with several major indices advancing by 1% to 2% at the time of this report.

“This follows Friday's announcement of a suspension of tariffs on select items in the consumer electronics sector, such as smartphones.”

However, Munnelly noted that news on Sunday indicated that tariffs on semiconductors, which had been exempt from import duties, would now be imposed.

“This situation adds to the growing confusion and uncertainty surrounding US trade policy, making it increasingly challenging for markets to navigate as discrepancies emerge across sectors, products, and regions regarding tariff rates and enforcement.

“Consequently, the reliability of the overnight equity rally seems relatively weak when viewed in a longer-term perspective.

“This cautious outlook is mirrored in other markets, as gold remains close to Friday’s peak, and the dollar index opens lower, with the yen slightly stronger at around JPY 143 against the USD.”

Markets rise across the region after tariff exemption announcement

Hong Kong’s Hang Seng Index jumped 2.4% to 21,417.40, the strongest performance among major markets.

Gains were broad-based, with CSPC Pharmaceutical Group soaring 9.49%, Hong Kong Exchange and Clearing rising 6.91%, and Xinyi Solar adding 5.81%.

Japan’s Nikkei 225 rose 1.18% to 33,982.36, supported by strength in electronics and pharmaceuticals.

Taiyo Yuden and Alps Electric surged over 5%, while Chugai Pharmaceutical climbed 5.03%.

The broader Topix index gained 0.88%.

In South Korea, the Kospi 100 rose 0.93% to 2,446.54, lifted by LG Innotek, F&F, and Coway, all of which posted gains exceeding 5%.

Australia’s S&P/ASX 200 advanced 1.34% to 7,748.60, buoyed by strong performances from Mineral Resources and Polynovo.

In New Zealand, the S&P/NZX 50 gained 0.74% to 12,107.54, with consumer and infrastructure names leading.

Mainland Chinese markets also rose, though more modestly.

The Shanghai Composite added 0.76% to 3,262.81, while the Shenzhen Component edged up 0.51%.

Several smaller-cap stocks in China hit daily gain limits, including Danhua Chemical Technology and Junhe Pumps.

The tariff reprieve boosted risk appetite, though uncertainty remained after Trump clarified in a Truth Social post that the exempted items were still subject to existing tariffs under different classifications.

Commerce secretary Howard Lutnick reinforced that the exemptions were not permanent.

Meanwhile, multiple Asia-Pacific nations, including Japan, India, and South Korea, were preparing for trade talks with the US this week.

In currency markets, the dollar was last down 0.46% on the yen, trading at JPY 142.88, as it weakened 0.77% against the Aussie to AUD 1.5779, and retreated 1.01% from the Kiwi, changing hands at NZD 1.6993.

Oil prices were higher, with Brent crude futures last up 0.57% on ICE at $65,13 per barrel, and the NYMEX quote for West Texas Intermediate ahead 0.52% at $61.82.

China exports rise sharply ahead of tariff deadline, Singapore eases monetary policy

In economic news, China’s exports rose sharply in March, exceeding expectations as companies rushed to ship goods ahead of potential new US tariffs.

Exports increased 12.4% year-on-year in dollar terms, well above the 4.4% growth forecast by economists surveyed by Reuters.

However, imports fell 4.3% compared to the same period last year, marking a deeper-than-expected contraction and signaling continued weakness in domestic demand.

In Singapore, the central bank eased monetary policy for the second consecutive time following disappointing first-quarter gross domestic product growth.

The economy expanded by 3.8% from a year earlier, below economists' forecasts.

In response, the Monetary Authority of Singapore announced it would further reduce the rate of appreciation of the Singapore dollar’s policy band, known as the S$NEER.

It marked a continuation of the loosening stance first adopted in January, its first policy shift since the pandemic era.

Meanwhile, Goldman Sachs revised its outlook for both oil and gold.

The bank said it now expected Brent crude to fall to $63 per barrel by the end of the year and to $58 in 2026, citing rising recession risks and increased output from OPEC+.

It forecast West Texas Intermediate to average $59 this year and $55 next year.

On the other hand, Goldman raised its year-end gold price target to $3,700 per ounce, up from $3,300, amid strong demand and global uncertainty.

Reporting by Josh White for Sharecast.com.