Tuesday 13th May 2025: Asia-Pacific Markets Mixed as U.S.-China Trade Deal Spurs Global Rally

Global Markets:

•  Asian Stock Markets : Nikkei up 1.74%, Shanghai Composite up 0.2%, Hang Seng down 1.5% ASX up 0.51%
• Commodities : Gold at $3252.35 (0.79%), Silver at $33.58 (1.69%), Brent Oil at $64.8 (-0.29%), WTI Oil at $61.7 (-0.29%)
• Rates : US 10-year yield at 4.453, UK 10-year yield at 4.6425, Germany 10-year yield at 2.6565

News & Data:

• (USD) Federal Budget Balance 258.4B  to 256.4B  expected

Markets Update:

Asia-Pacific markets were mixed on Tuesday following a strong rally on Wall Street driven by a surprise U.S.-China trade deal. The agreement includes a 90-day pause on tariffs and a reduction in reciprocal tariffs by 115 percentage points. This unexpected move boosted global market sentiment, with analysts at Japanese investment bank Nomura upgrading Chinese equities to a “tactical overweight.” Chetan Seth, Asia-Pacific equity strategist at Nomura, noted that the scale of the tariff cut exceeded expectations and would likely support short-term market optimism. To fund the upgrade in Chinese stocks, Nomura reduced its overweight position on India.

Despite the positive trade news, Hong Kong markets declined, with the Hang Seng Index falling 1.74% and the Tech Index down 3.06%, reversing gains from the previous session. Mainland China’s CSI 300 remained flat. Indian markets also dipped, with the Nifty 50 and BSE Sensex down 0.34% and 0.39%, respectively, despite strong gains the day before due to optimism over the India-Pakistan ceasefire.

Japan’s Nikkei 225 jumped 1.71%, and the broader Topix gained 1.28%. South Korea’s Kospi was flat, while the Kosdaq rose 1.15%. In Australia, the S&P/ASX 200 added 0.51%.

In the U.S., stock futures dipped slightly after a major rally. The Dow surged 1,160.72 points (2.81%) to 42,410.10. The S&P 500 rose 3.26%, cutting its year-to-date loss to 0.6%. The Nasdaq jumped 4.35% to 18,708.34, led by tech giants like Tesla and Apple benefiting from reduced China-related risks.

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The post Tuesday 13th May 2025: Asia-Pacific Markets Mixed as U.S.-China Trade Deal Spurs Global Rally first appeared on IC Markets | Official Blog.