EU, Asian Indices Tracking Gains On US Market

Tokyo: Asian shares surged in Thursday trading, with Japan’s benchmark jumping more than 2,000 points almost immediately after the Tokyo exchange opened, as investors welcomed President Donald Trump’s decision to back off on most of his tariffs. Analysts had expected the regional comeback given that US stocks had one of their best days in history Wednesday on a euphoric Wall Street, where investor hopes had run high that Trump would tone down the tariffs. On Thursday, Japan’s benchmark Nikkei 225 jumped 8.2 per cent in morning trading to 34,302.05, zooming upward as soon as trading began. Australia’s S&P/ASX 200 soared 4.7 per cent to 7,721.40. South Korea’s Kospi gained 4.9 per cent to 7,721.40. Hong Kong’s Hang Seng added 2.8 per cent to 20,821.48. The Shanghai Composite edged up 0.6 per cent to 3,207.35.

Stephen Innes, managing partner at SPI Asset Management, called the reaction from fear to euphoria.

In early trading, Germany’s DAX initially gained more than 8%. By midmorning, they were up 5.3% at 20,720.86, while France’s CAC 40 in Paris gained 5% to 7,204.23. Britain’s FTSE 100 surged 4.0% to 7,983.37. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports. The future for the S&P 500 was down 2.1% while the contract for the Dow Jones Industrial Average dropped 1.6%.