Asian stocks rocketed Thursday as investors breathed a huge sigh of relief after Donald Trump announced a pause on crippling tariffs on US partners, with Chinese markets even brushing off his decision to ramp up duties on Beijing to 125 percent.Equities surged across the board, tracking a blistering performance on Wall Street, after the US president said he would delay for 90 days measures announced last week that set off a firestorm on trading floors and sparked warnings of a global recession.Trump said he would keep in place a basic levy of 10 percent on dozens of countries but upped the ante in his brutal trade war with superpower rival China by hitting it even harder after it retaliated in kind at the weekend.Trump made the decision because he said investors were “jumping a little bit out of line” as markets collapsed and US Treasuries — considered the safest option in times of crisis — were also showing signs of cracking on concerns about the world’s top economy.People “were getting yippy, a little bit afraid”, he added, referring to a term in sports to describe a loss of nerves.The extra tariffs on Beijing, however, were “based on the lack of respect that China has shown to the world’s markets”, Trump said.The president denied he had made a U-turn, telling reporters that “you have to be flexible”.Asian traders welcomed the move, ramping up equities throughout the region.Hong Kong rallied more than four percent — a third day of gains after collapsing more than 13 percent on Monday in its worst day since 1997 during the Asian financial crisis. Shanghai gained more than one percent.The two markets have been given extra support by optimism that Chinese officials will unveil fresh stimulus to support the economy in light of the tariff measures.Official data showing another drop in consumer prices last month added to those hopes.- ‘Fear to euphoria’ -Tokyo’s Nikkei surged more than eight percent, Seoul and Singapore each piled on more than five percent, and Sydney and Jakarta more than four percent.Taipei’s 9.3-percent gain was its best rise on record — after Monday’s 9.7-percent drop represented its worst fall.Shares in Vietnam, which was facing some of the heftiest tariffs, jumped 6.5 percent, while Manila and Wellington were also deep in the green.Tech firms were the standout performers, with Sony, Sharp, Panasonic and SoftBank chalking up double-digit gains, while airlines, car makers and casinos also enjoyed strong buying.Apple suppliers posted blockbuster rallies — Hong Kong-listed AAC Technologies surged 23 percent and in Taiwan, Hon Hai added almost 10 percent.”Asia markets are flipping the switch — from fear to euphoria — as Trump throws a 90-day lifeline, pausing the reciprocal tariff barrage,” said Stephen Innes at SPI Asset Management.”The president’s post nodded to the ‘yippy’ reaction to his historic hikes, and honestly, that sums it up. “We just witnessed one of the all-time bouncebacks — and now, we look for Asia investors, much like their North American counterparts, to step in and buy the ‘yips’.”US Treasury yields also edged down, after a successful auction of $38 billion in notes, said Briefing.com.That eased pressure on the bond market, which had fanned worries that investors were losing confidence in the United States.The tumult caused by Trump’s trade war is also causing a headache for the US Federal Reserve as it tries to decide whether to cut interest rates to protect the economy, or keep them elevated to ward off the inflation many say tariffs will fuel.Minutes from the central bank’s March meeting, released Wednesday, showed members were concerned that “the announced or planned tariff increases were larger and broader than many of their business contacts had expected”. That was before the president unveiled his widespread duties of up to 50 percent on friend and foe — now paused until July.Some decision-makers noted that they “may face difficult tradeoffs if inflation proved to be more persistent while the outlook for growth and employment weakened”, the minutes showed.Oil prices edged down after a much-needed bounce of more than four percent on Wednesday. Still, both main contracts remain under pressure amid concerns about the global economy and its impact on demand.Gold also rallied around two percent, while bitcoin put on more than six percent.- Key figures around 0230 GMT -Tokyo – Nikkei 225: 8.3 percent at 34,353.17 (break)Hong Kong – Hang Seng Index: UP 4.2 percent at 21,108.06Shanghai – Composite: UP 1.6 percent at 3,236.06Dollar/yen: DOWN at 147.00 yen from 147.82 yen on WednesdayEuro/dollar: UP at $1.0970 from $1.0948 Pound/dollar: UP at $1.2825 from $1.2810Euro/pound: UP at 85.54 pence from 85.45 penceWest Texas Intermediate: DOWN 0.6 percent at $61.98 per barrelBrent North Sea Crude: DOWN 0.8 percent at $64.96 per barrelNew York – Dow: UP 7.9 percent at 40,608.45 (close)London – FTSE 100: DOWN 2.9 percent at 7,679.48 (close)

US President Donald Trump abruptly paused tariffs on most countries, sparking euphoria on global markets Thursday, but upped the ante on a brutal trade war with superpower rival China.After days of turmoil, stocks on Wall Street and across Asia saw huge surges in reaction to Trump’s announcement that he was halting a levy hike for almost all nations for 90 days.But Trump also said he was raising tariffs on China to 125 percent because of a “lack of respect.”Trump denied that he had backtracked on the tariffs, telling reporters that “you have to be flexible.””People were jumping a little bit out of line, they were getting yippy, a little bit afraid,” Trump said. “Yippy” is a term in sports to describe a loss of nerves.He said he had been watching the “very tricky” state of the crucial US bonds market before his decision.”I saw last night where people were getting a little queasy,” he said, as US bond yields rose during the stocks sell-off — a major economic red light as American sovereign government debt is normally seen as a safe haven for investors in troubled times.Trump also predicted that trade deals will be made with all countries, including China, which has for now, refused to roll back retaliatory tariffs on US goods.”A deal’s going to be made with China. A deal’s going to be made with every one of them,” Trump said, adding however that China’s leaders “don’t quite know how to go about it.”Trump also said that he “can’t imagine” increasing Chinese tariffs more than he has.- China duel -Markets have been on a rollercoaster ride since Trump’s announcement of sweeping global tariffs one week ago on what he called “Liberation Day” before his dramatic pause on Wednesday.Trump had imposed a 10 percent baseline tariffs on all countries which came into effect on Saturday, and higher rates on key trading partners like China and the European Union that he accused of cheating the United States, which activated on Wednesday.But as markets swayed yet again, Trump said in a surprise announcement on his Truth Social network that “I have authorized a 90 day PAUSE” on the higher tariffs, while the baseline 10 percent would remain.He said that he took the decision after more than 75 countries reached out to negotiate and did not retaliate.Japan — which had been slapped with 24 percent under the so-called reciprocal tariffs — said it welcomed the news but still “strongly” demanded that Washington reconsider other levies on its steel and auto exports.At the same time, Trump ramped up his confrontation with China, which has announced retaliatory tariffs of 84 percent on US imports from 12:01 pm (0401 GMT) on Thursday.Beijing said Washington’s steps pile “mistakes on top of mistakes”.The European Union had earlier launched its own counterattack, announcing measures targeting some US products from next week in retaliation for American duties on global steel and aluminum exports.The 27-nation bloc will hit more than 20 billion euros’ worth of US products, including soybeans, motorcycles and beauty products.But the EU notably did not retaliate against the separate “Liberation Day” tariffs of 20 percent that came into effect on Wednesday.- ‘BE COOL!’ -Wall Street stocks rocketed on Trump’s pause announcement.The S&P 500 surged 9.5 percent to 5,456.90, snapping a brutal run of losses over the past week.Markets in Asia on Thursday also rallied, with Hong Kong, Taipei, Australia and Tokyo surging on opening after days of losses.Stocks in Chinese economic powerhouse Shanghai were also up, despite Trump’s decision to further hike tariffs.And Indonesia’s benchmark stock index rallied nearly five percent higher at the open.Before his pivot, Trump said world leaders were rushing to negotiate “tailored” deals with the United States, with Japan and South Korea among those sending delegations to Washington.”I’m telling you, these countries are calling us up kissing my ass,” Trump told a dinner with fellow Republicans on Tuesday night.Trump believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.The billionaire former property tycoon has particularly raged against China, accusing it of excess production and “dumping” inexpensive goods on other economies.With the trade war between the world’s two biggest economies showing little signs of abating, China told tourists on Wednesday to “fully assess the risks” before travelling to the United States.Separately, US Defense Secretary Pete Hegseth warned against Chinese “threats” as he visited Panama, whose canal is at the center of a row between Beijing and Washington.burs-oho/tym

Consumer prices in China fell in March for the second straight month, official data showed Thursday, as the world’s second-largest economy struggles to boost spending and a trade war with the United States deepens.The drop comes as Beijing seeks to boost domestic consumption, which has yet to recover to pre-pandemic levels.The consumer price index (CPI) — a key measure of inflation — was down 0.1 percent year-on-year in March, according to data released by the National Bureau of Statistics (NBS).The figure came in slightly lower than expected by analysts surveyed by Bloomberg who predicted the index would remain unchanged.But the index’s decline narrowed from the 0.7 percent drop year-on-year in February.The past two months have reversed the 0.5 percent uptick seen in January, when a surge in spending during the Lunar New Year boosted inflation to its highest rate in months.The prices of food, tobacco and alcohol in March fell by 0.6 percent year-on-year.While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions, hoping for further reductions in prices.A lack of demand can then force companies to cut production, freeze hiring or lay off workers, while potentially also having to discount existing stocks — dampening profitability even as costs remain the same.Beijing unveiled a slew of measures to boost the economy last year, including cutting interest rates and cancelling restrictions on homebuying.China’s fragile recovery is also threatened by a trade war with the United States instigated by President Donald Trump, who further raised tariffs on China to 125 percent on Wednesday.”Deflationary pressure is persistent,” wrote Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, in a note.”The policy uncertainty in the US is still elevated,” he added.Premier Li Qiang in March announced a national growth target of “around five percent” for this year — the same as 2024.Many economists consider the goal to be ambitious given the headwinds facing China’s economy.