Chinese stocks surge on news of gradual U.S. tariff increase under Trump, impacting regional equities.

From Investing.com: 2025-01-13 22:18:10

Asian stocks had a mixed day, with Chinese stocks surging on news of a gradual U.S. tariff increase under Trump. Japanese shares saw sharp declines, impacting regional equities. U.S. stock index futures were higher, awaiting key inflation data to assess the Fed’s interest rate outlook after a hawkish stance in the last meeting.

China’s index jumped 2% and the index climbed 1.8%, while Hong Kong’s index rose 1.5%. Trump’s economic team is considering monthly tariff hikes of 2% to 5% to enhance negotiating leverage with China. Trump has vowed to impose a minimum 60% tariff on Chinese exports.

Japan’s Nikkei led losses with a 1.7% slump, while Australia’s index inched 0.3% higher. South Korea’s market was largely unchanged amidst a political crisis. The Bank of Korea is expected to lower its base rate by 25 basis points to support the struggling economy.

Prospects of fewer Fed rate cuts in 2025 are adding downward pressure on Asian shares. The Fed signaled fewer-than-expected cuts this year due to sticky inflation and a resilient economy. Market expectations have adjusted to just one rate cut this year, a significant change from the previous anticipation of four cuts.



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