Asian Markets Rally Amid Trade War Tensions
Asian markets experienced a significant rebound on Tuesday, recovering from a severe global sell-off that occurred the previous day. Japan’s Nikkei 225 index surged over 6% in early trading, bouncing back from an 8% decline. This recovery comes as fears of an international recession grow, fueled by escalating tensions in the US-China trade war. China has vowed to respond firmly to new tariffs threatened by the US, further intensifying market volatility.
Indian Markets Show Signs of Recovery
The Indian stock market demonstrated resilience on Tuesday, with benchmark indices Nifty and Sensex showing notable gains in pre-opening sessions. The Sensex opened at 74,293.29, up by 1,155.39 points, while Nifty climbed 415.95 points to reach 22,577.55. This recovery follows a tumultuous Monday when the Sensex plummeted over 5%, losing nearly 3,000 points, and Nifty fell by more than 1,100 points. All 30 stocks on the Sensex were in the red during that session, with major companies like Tata Steel, Infosys, and ICICI Bank facing significant losses.
Japan’s Nikkei 225 Sees Strong Gains
In Japan, the Nikkei 225 index rose by 6.5% to reach 33,148.52 by late morning. This surge was largely driven by investor bargain-hunting following Wall Street’s turbulent trading session on Monday. The positive sentiment in Japan reflects a broader trend across Asian markets, as investors seek to capitalize on lower stock prices after the recent sell-off.
Australian and Hong Kong Markets Recover
Australian stocks also rebounded on Tuesday, with the S&P/ASX 200 index rising 1.1% to 7,423.40. This recovery followed a sharp 4.2% drop on Monday, which had pushed the index to levels not seen since the onset of the COVID-19 pandemic. The gains were primarily supported by strength in the banking and mining sectors, as investors reacted positively to reassurances from Treasurer Jim Chalmers regarding Australia’s economic resilience amid global trade tensions.
In Hong Kong, the Hang Seng Index opened 1.66% higher after experiencing a historic 13.2% drop on Monday, marking its worst performance since the 1997 Asian financial crisis. However, gains remained modest compared to earlier losses, indicating ongoing uncertainty in the market.
Broader Implications of the US-China Trade War
The ongoing trade war between the US and China continues to cast a shadow over global markets. President Donald Trump has threatened to impose a 50% tariff on Chinese goods, escalating fears of a prolonged trade conflict. In response, China’s commerce ministry stated it would “fight to the end” to protect its economic interests, announcing a 34% duty on US imports set to take effect soon. Despite the rising tensions, China has reiterated its willingness to engage in dialogue, emphasizing that there are no winners in a trade war.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
