Asia report: Markets rise as Trump delays certain tariffs
By Josh White
Date: Thursday 06 Mar 2025
(Sharecast News) - Asia-Pacific markets largely advanced on Thursday following US president Donald Trump's decision to postpone tariffs on certain automakers.
The delay, announced by the White House as a one-month deferral for vehicles meeting United States-Mexico-Canada Agreement standards, contributed to a boost in investor sentiment across the region.
"Asian markets posted gains on Thursday as investor sentiment remained buoyant, fueled by optimism over potential improvements in trade relations," said TickMill market strategy partner Patrick Munnelly.
"This followed Donald Trump's decision to temporarily exempt automakers from tariffs for one month.
"Meanwhile, the euro held firm ahead of the European Central Bank's upcoming policy meeting."
Munnelly noted that Japanese government bonds faced significant pressure during Asian trading hours, driven by a sharp sell-off in German long-term bonds.
"This came as Germany's coalition parties signaled a move toward easing fiscal regulations.
"As a result, the yield on Japan's 10-year government bond surged to its highest level in nearly 16 years, underscoring persistent market uncertainty.
"Global trade tensions remain a key concern for investors, especially after the U.S. imposed 25% tariffs on imports from Mexico and Canada earlier this week, along with additional tariffs on Chinese goods."
Markets in the green across the region
In Japan, the Nikkei 225 climbed 0.77% to 37,704.93, while the broader Topix index gained 1.22% to 2,751.41.
Notable performers included Japan Steel Works, which surged 15.86%, Mitsubishi Heavy Industries with a 10.79% rise, and Okuma Corporation, up 8.04%.
China's markets reflected positive momentum with the Shanghai Composite rising 1.17% to 3,381.10.
Technology companies led the gains, as Xi an Bright Laser Tech jumped 20%, Suzhou TZTEK Technology increased by 15.61%, and Fujian Forecam Optics rose 12.12%.
The Shenzhen Component also advanced 1.77% to 10,898.75.
Hong Kong's Hang Seng Index surged 3.29% to 24,369.71, supported by robust performances from Kuaishou Technology, up 15.7%; CK Hutchison, ahead 9.45%, and JD.com , which rose 8.42%.
In South Korea, the Kospi 100 gained 0.98% to 2,559.77, with Posco ICT up 11.71%, Hyundai Steel rising 9.94%, and Korea Aerospace increasing by 9.93%.
Market activity was mixed further south - Australia's S&P/ASX 200 fell 0.57% to 8,094.70, with declines noted in Mesoblast of 8.33%, Woodside Energy Group, which fell 4.73%, and AGL Energy, which was off 4.08%.
Meanwhile, New Zealand's S&P/NZX 50 edged up 0.14% to 12,428.84, with Infratil, Summerset Group, and Kiwi Property Group recording gains of 2.64%, 2.49%, and 2.19% respectively.
In currency markets, the dollar was last up 0.7% on the yen to trade at JPY 147.81 and 0.18% higher on the Aussie at AUD 1.5813, while it weakened 0.09% against the Kiwi to change hands at NZD 1.7466.
Oil prices were lower, with Brent crude futures last down 0.06% on ICE at $69.24 per barrel, and the NYMEX quote for West Texas Intermediate losing 0.14% to $66.92.
Inflation eases in Korea, JGB yield climbs almost eight basis points
In economic news, South Korea's inflation rate eased in February for the first time in four months, coming in at 2% year-on-year, down from January's 2.2% increase.
The figure slightly exceeded economists' expectations of 1.95%, according to a Reuters poll.
Meanwhile, Japanese government bond yields surged on Thursday, driven by a broader global bond sell-off.
The 10-year JGB yield climbed nearly eight basis points, surpassing 1.5% for the first time since June 2009.
Long-term bonds also faced pressure, with 30-year yields rising 13 basis points to exceed 2.5% for the first time since 2008.
Reporting by Josh White for Sharecast.com.
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