After experiencing steep falls in response to global trade tensions and tariff threats, Japan’s Nikkei 225 index has risen by 5%. This increase follows a volatile day in financial markets worldwide, with the S&P 500 closing lower after reports of a potential pause in tariff implementation by the US, later dismissed as “fake news” by the White House. The rise in the Nikkei index comes after US President Donald Trump issued a new ultimatum to China, threatening additional tariffs unless China rescinded its retaliatory measures.
Asian markets opened higher, with Japan’s Nikkei up 5.5%, South Korea’s Kospi gaining 2%, and other markets in New Zealand and Australia also seeing increases. Meanwhile, Chinese state holding companies have pledged to increase share investments to stabilize the stock market after recent plunges.
South Korea is considering measures to increase imports from the US in response to Trump’s tariffs, while Japan nominated Economy Minister Ryosei Akazawa as a trade negotiator with the US. The European Union’s proposal of “zero-for-zero” tariffs was rejected by Trump, who emphasized the need for selling energy to the EU to eliminate trade deficits.
Global stock markets have experienced extreme volatility following Trump’s trade tariffs, with Wall Street swinging in and out of the red. amid concerns of a global recession. China has stated it will not cave in to pressure, and Trump has indicated that permanent tariffs could be imposed while negotiations continue. The situation remains uncertain, with markets bracing for further developments in the ongoing trade tensions.
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