Before European markets opened, the situation in Asia-Pacific was relatively calm compared to the previous day. However, markets in Thailand and Indonesia experienced a downturn upon reopening after holidays. Jakarta's JSX index dropped over 9%, leading to a temporary trading halt, while Thailand's SET lost 5.7%. Taiwan's Taiex also decreased by 4.4%, influenced by losses from Taiwan Semiconductor Manufacturing Corp.
Following a volatile day on Wall Street, where President Trump's tariff threats stirred uncertainty, most regional markets in Asia rebounded. China's Commerce Ministry vowed to retaliate against the U.S. if additional tariffs were imposed. The Nikkei 225 in Tokyo saw a 5% rise, while Hong Kong and Shanghai markets showed signs of recovery after significant drops the day before. South Korea's Kospi and Australia's S&P/ASX 200 also made gains.
Investors are closely monitoring Trump's trade decisions, as they weigh the impact on global markets. The possibility of trade deals leading to tariff reductions offers hope, while continued tariffs could exacerbate stock market declines. Notably, the Dow Jones Industrial Average and S&P 500 experienced dramatic fluctuations, with the latter even seeing a substantial leap following speculation – later debunked – about a potential tariff pause by Trump. This incident underscored the market's sensitivity to any signals of tariff easing.