HONG KONG, 18 March 2025 (BSS/AFP) – Asian markets surged on Tuesday, following another positive day on Wall Street, buoyed by US data that alleviated recession concerns. Chinese technology companies contributed to the rally in Hong Kong, leading the region’s gains.
The week began on a high note after Beijing introduced a series of measures over the weekend aimed at stimulating consumer activity in China. This was followed on Monday by data showing that US retail sales exceeded expectations in February, easing fears of a downturn in the world’s largest economy.
However, despite these encouraging signs, investors remain cautious about the ongoing trade tensions, particularly the impact of Donald Trump’s trade war on global growth. No new announcements have been made recently, but there are continuing concerns about the consequences of the trade conflict.
Hong Kong led the gains, with the Hang Seng Index rising significantly, largely driven by buying activity in Chinese tech companies. Alibaba, Tencent, and JD.com were among the top performers, while electric vehicle maker BYD also saw a significant jump of over six percent, hitting a record high after revealing new battery technology capable of charging in just five minutes.
Other Asian markets also saw positive movement, with Shanghai, Tokyo, Sydney, Seoul, Singapore, Taipei, and Manila all posting gains.
This rally followed a second consecutive day of gains on Wall Street, after a month of volatility triggered by concerns over Trump’s tariffs, which have sparked fears of rising inflation and an economic slowdown in the US.
However, Stephen Innes of SPI Asset Management cautioned investors not to become complacent. He highlighted that new tariffs on US trading partners are set to take effect on 1 April, which could escalate market uncertainty.
“Don’t get too comfortable – nervous eyes remain locked on Washington’s tariff tumult,” Innes wrote. “The storm is far from over, and with the next escalation looming, the market is still walking a fine line between optimism and another sharp reality check.”
As trade uncertainties continue to weigh on the market, gold prices reached a fresh record of $3,008.53 during early trading on Tuesday, reflecting heightened demand for safe-haven assets.
This week, key central banks, including the Federal Reserve, the Bank of Japan, and the Bank of England, are set to announce their policy decisions. All three are expected to maintain current interest rates, with the US Federal Reserve’s announcement also including updates on the economic outlook and interest rate projections amid the ongoing trade tensions.
Ryan Wang, US economist at HSBC, noted that while significant changes in forward guidance on policy rates are unlikely, the overall economic outlook could be revised in a more pessimistic direction due to the impact of trade measures and other political factors.
Key Figures (as of 0230 GMT):
Tokyo – Nikkei 225: UP 1.5% at 37,943.23
Hong Kong – Hang Seng Index: UP 1.9% at 24,599.48
Shanghai – Composite: UP 0.2% at 3,432.30
Currency & Commodities:
Euro/dollar: DOWN at $1.0911 from $1.0925 on Monday
Pound/dollar: DOWN at $1.2977 from $1.2990
Dollar/yen: UP at 149.51 yen from 149.12 yen
Euro/pound: UP at 84.08 pence from 84.07 pence
West Texas Intermediate: UP 0.3% at $67.75 per barrel
Brent North Sea Crude: UP 0.3% at $71.25 per barrel
Global Market Updates:
New York – Dow: UP 0.9% at 41,841.63 (close)
London – FTSE 100: UP 0.6% at 8,680.29 (close)
Related Information:
The ongoing uncertainty surrounding global trade remains a key concern for investors. Market volatility has been high, driven by the tariff war and its potential impact on inflation. As central banks prepare for their upcoming policy announcements, investors will be closely watching for any signals that may affect interest rate decisions and the broader economic outlook, particularly in light of trade developments.