Global markets today: Asian stocks rebound despite Trump’s tariff threats; Nikkei up 5.50%, Kospi gains 2.30%

Global markets today: Asian markets saw a strong rebound on Tuesday, with Japan’s Nikkei 225 surging 5.5% after suffering a nearly 8% drop the previous day.

The recovery came after a volatile session on Wall Street, triggered by President Donald Trump’s threat to escalate tariffs into double digits.

Within 30 minutes of opening, the Nikkei 225 had climbed to 32,819.08 in Tokyo.

South Korea’s Kospi rose by 2%, while markets in New Zealand and Australia also traded higher.

Stocks Australia also moved higher, along with futures for the S&P 500 and Nasdaq 100, which each rose by over 1%.

In contrast, futures for Hong Kong indicated declines after a U.S.-listed index of Chinese shares dropped more than 5%, following Trump’s threat to impose an additional 50% tariff on China. Treasury yields and the U.S. dollar remained stable in early Tuesday trading.

In Asia, Chinese stocks tumbled on Monday, and sovereign bond yields approached record lows as investors prepared for the consequences of an escalating trade dispute between the world’s two largest economies. China’s countermeasures in response to President Trump’s broad tariffs have made it clear that the long-feared trade war has entered a more intense phase.

Indonesian markets experienced volatility on Tuesday as financial markets reopened following an extended holiday, during which global markets plunged due to escalating tariff tensions.

When trading resumed for the first time since March 27, Indonesian stocks dropped sharply by 9.2%, prompting a 30-minute trading halt. The downturn was fueled by U.S. President Donald Trump's imposition of tariffs and China's retaliatory measures, which sparked a widespread selloff in risk assets and triggered market declines across Asia.

Global markets on Monday

Asian markets had tumbled sharply, with Hong Kong stocks plunging 13.2%—marking their steepest single-day loss since the 1997 Asian financial crisis, on Monday.

On Monday, the S&P 500 dipped 0.2% as anxious investors waited to see President Trump’s next move in the ongoing trade war. If other nations agree to new trade deals, Trump might ease tariffs, potentially sidestepping a recession. However, if the tariffs remain in place long-term, stocks could continue to slide.

The Dow Jones Industrial Average dropped 349 points, or 0.9%, while the Nasdaq composite managed a slight gain of 0.1%.

All three indexes opened with sharp declines, with the Dow at one point plummeting by as much as 1,700 points amid global market turmoil. But by late morning, it rebounded dramatically, gaining nearly 900 points. The S&P 500 also saw a dramatic shift, recovering from a 4.7% loss to a 3.4% rise—one of its strongest intraday turnarounds in years.

(With inputs from agencies)

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