Daily Fundamental Update: Asian Stocks Trade Higher After Tariffs Exemption for Consumer Electronics
Asian markets rose Monday after Trump’s consumer electronics tariff pause. Hong Kong’s Hang Seng Index led with a 2.31% gain, while its Tech Index rose 2.52%.
Other gains included China’s CSI 300 (0.47%), Japan’s Nikkei 225 (1.92%), South Korea’s Kospi (0.98%), and Australia’s S&P/ASX 200 (1.35%). Indian markets were closed.
S&P 500 futures gained 0.86%, Nasdaq-100 futures rose 1.31%, and Dow futures added 0.27%.
Trump temporarily exempted electronics and semiconductors from new tariffs, though officials later indicated these exemptions may not be permanent. The president clarified these items still face existing tariffs.
The “Magnificent Seven” stocks have declined 5% since the tariff announcement, with Apple dropping $640 billion in value.
Markets experienced extreme volatility last week, with the VIX exceeding 50. A mid-week 90-day tariff delay sparked one of the largest rallies since WWII.
RBC’s Lori Calvasina noted that tariff delays and bank earnings helped boost markets despite recession concerns.
Major indices remain down since the tariff announcement: S&P 500 (-5.4%), Nasdaq (-5%), and Dow (-4.8%).
This week brings earnings from banks like Goldman, Bank of America, and Citigroup, plus Netflix and United Airlines.
Stocks are coming off a positive week despite their wild ride amid the Trump administration’s tariff developments.
- The S&P 500 gained 5.70%, its best weekly performance since Nov. 3, 2023, when it gained 5.85%, and first positive week after 3 weekly declines.
- The Dow Jones Industrial Average jumped 4.95%, its best weekly performance since Nov. 3, 2023, when it gained 5.07%.
- The Nasdaq Composite rose 7.29%, its best weekly performance since Nov. 11, 2022, when it gained 8.10%, and first positive week in three.
- The Russell 2000 advanced 1.82%, its best weekly performance since Jan. 17, 2025, when it gained 3.96%, and first positive week in three.
