Investing.com-- Most Asian stocks jumped on Thursday led by a surge in Hong Kong shares, as President Donald Trump’s delay of 25% auto tariffs on Mexico and Canada eased immediate trade war fears, while optimism was further boosted by China’s new stimulus measures.
Major U.S. stock indexes jumped on Wednesday, in anticipation that the U.S. administration may be open to tariff negotiations.
Asia stocks jump as Trump’s auto tariff delay signals softer stance
On Tuesday, President Trump escalated trade tensions by imposing 25% tariffs on Canadian and Mexican goods, and increased levies on Chinese products to 20%.
In his congressional speech on Wednesday, Trump reaffirmed plans for reciprocal tariffs, set to take effect on April 2. This move could further escalate trade tensions.
However, the White House announced on Wednesday a one-month exemption from the newly imposed 25% tariffs on vehicle imports from Mexico and Canada, offering temporary relief to global markets.
The White House said Trump is open to considering more tariff exemptions after they took effect Tuesday.
A Bloomberg report showed that Trump is planning to exempt certain agricultural products from the tariffs imposed on Canada and Mexico.
Japan’s Nikkei 225 jumped 1.1% on Thursday, while TOPIX advanced 1.2%.
Indonesia’s Jakarta Stock Exchange Composite Index climbed 1.4%, while the Philippines’ PSEi Composite index rose 1.2%.
Singapore’s Straits Times Index gained 0.6%, while South Korea’s KOSPI was trading 0.9% higher.
India’s Nifty 50 Futures edged up 0.1%.
Bucking the regional trend, Australia’s S&P/ASX 200 index fell 0.6%.
HK shares surge on fresh China stimulus; tech sector leads gains
China announced new fiscal stimulus measures at the National People’s Congress on Wednesday to invigorate its slowing economy, setting a 2025 GDP growth target of approximately 5%.
Premier Li Qiang emphasized enhancing domestic consumption and technological innovation, particularly in artificial intelligence (AI). The government plans to increase the fiscal deficit ratio to 4% to finance consumer goods programs and bolster the tech sector.
The NPC highlighted AI’s importance, mentioning startups like DeepSeek, known for its cost-effective, high-performance AI models. This acknowledgment bolstered investor confidence in the tech sector.
Hong Kong’s Hang Seng index climbed 2.3%, while the Hang Seng TECH index surged 3.2%.
Among HK-listed tech giants, Alibaba’s (HK:9988) stock surged 6.2%, while Tencent (HK:0700) shares climbed 4.7%.
China’s Shanghai Composite rose 0.8%, while the Shanghai Shenzhen CSI 300 index gained 0.9%.
Despite ongoing U.S.-China trade tensions, including recent tariffs and sanctions, China’s commitment to AI and tech innovation has invigorated its stock markets.