Asian stocks experienced fluctuations on Friday following President Donald Trump's decision to halt most tariffs for 90 days, resulting in a relief rally. However, uncertainties related to the ongoing trade tensions between the US and China, as well as the high tariff rates, are keeping investors on edge. Despite the temporary suspension of tariffs by Trump, anxiety persists in the markets as concerns about the unresolved trade war continue to linger. The Asian markets closed with mixed results, influenced by fluctuating sentiments over the trade conflict initiated by Trump. Certain indexes, such as the Nikkei 225, Kospi, and ASX 200 saw declines, while the Hang Seng Index and CSI 300 experienced gains. Market participants are closely monitoring the situation, with expectations of potential state-backed purchases in Hong Kong and China along with anticipated stimulus measures from Beijing amid the escalating trade tensions with the US. The uncertainty surrounding the trade war, coupled with the heightened levels of unpredictability, have left investors cautious as they approach the weekend. Analysts emphasize that despite the temporary suspension of tariffs, the underlying issues related to trade tensions persist and are far from resolved, as indicated by the significant tariff rates imposed by the US on Chinese imports.Louis Navellier of Navellier & Associates highlighted that the recent selloff in the markets was not unexpected after the initial surge following the tariff suspension. He reiterated that the tariff issue remains ongoing, emphasizing that the story is far from over.
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