Global Markets Gain On Tariff War De-Escalation Hopes

Tokyo: Asian shares mostly rose Wednesday, with markets showing relief after President Donald Trump indicated he won’t dismiss the head of the US Federal Reserve. Japan’s benchmark Nikkei 225 gained 1.9 per cent in afternoon trading to 34,875.64. Australia’s S&P/ASX 200 surged 1.3 per cent to 7,920.50. South Korea’s Kospi gained 1.5 per cent to 2,523.17. Hong Kong’s Hang Seng added 2.2 per cent to 22,039.88, while the Shanghai Composite edged up 0.2 per cent to 3,305.43.

Trump had previously said he could fire Fed chair Jerome Powell after the Fed paused cuts to short-term interest rates. But Trump told reporters Tuesday, “I have no intention of firing him.” Investors were also cheered by comments from US Treasury Secretary Scott Bessent in a Tuesday speech. He said the ongoing tariffs showdown with China is unsustainable and he expects a “de-escalation” in the trade war.

US stocks jumped in a widespread rally on Tuesday, and other US investments steadied a day after falling sharply. The S&P 500 climbed 2.5 per cent.