Asian stocks fluctuate after wavering tariff news

FII buying spree stretches to day six with ₹3,333 crore inflow; DIIs flip to selling

Asian stock markets experienced notable fluctuations on Thursday, April 24, 2025, as investors grappled with mixed signals from the U.S. administration regarding trade tariffs and Federal Reserve policies. President Donald Trump's recent statements, oscillating between aggressive tariff implementations and conciliatory remarks, have introduced significant volatility into global markets.

Market Performance Across Asia

The day saw a varied performance across major Asian indices:

Japan's Nikkei 225: Closed up by 0.9%, buoyed by gains in export-oriented sectors. citeturn0news13
Australia's ASX 200: Advanced 0.6%, reflecting optimism in the domestic market. citeturn0news13
China's Shanghai Composite: Increased by 0.4%, indicating resilience amid trade uncertainties. citeturn0news13
South Korea's KOSPI: Declined by 0.5%, with technology stocks facing downward pressure. citeturn0news13
Hong Kong's Hang Seng: Dropped 0.3%, affected by investor caution over trade developments. citeturn0news13

U.S. Policy Shifts and Their Implications

President Trump's recent pronouncements have introduced a mix of apprehension and optimism in the markets:

Tariff Adjustments: Trump suggested a substantial reduction in tariffs on Chinese imports, contingent upon successful trade negotiations. This marked a departure from his earlier stance of imposing higher tariffs, signaling a potential de-escalation in trade tensions. citeturn0news14
Federal Reserve Relations: After previously criticizing Fed Chairman Jerome Powell, Trump clarified he has no intention of removing him from his position. This assurance helped stabilize investor sentiment regarding U.S. monetary policy continuity. citeturn0news15

Sectoral Movements and Investment Trends

The shifting trade landscape has influenced sector-specific movements:

Technology Stocks: In South Korea, major tech firms like Samsung and SK Hynix experienced declines, reflecting concerns over supply chain disruptions due to tariff uncertainties. citeturn0search8
Defensive Sectors in Singapore: Investors are gravitating towards high-yield, defensive sectors such as telecommunications and utilities. Companies like Singtel and ST Engineering have seen significant institutional inflows, highlighting a preference for stability amidst global trade volatility. citeturn0news16

Currency and Commodity Markets

Global currency and commodity markets responded to the evolving trade narratives:

Currencies: The U.S. dollar weakened against major currencies, including the yen and euro, as investors reassessed risk profiles in light of potential policy shifts. citeturn0news12
Gold: Prices surged, nearing a record high at $3,340.29 per ounce, as investors sought safe-haven assets amidst market volatility. citeturn0news12
Oil: Prices experienced minor gains, influenced by speculation around OPEC+ potentially increasing output and the broader implications of trade policies on global demand. citeturn0news12

Outlook and Investor Sentiment

While recent statements from the U.S. administration have provided some relief, the lack of concrete policy direction continues to foster uncertainty. Investors remain cautious, balancing optimism over potential trade resolutions with the reality of fluctuating policy signals. The coming weeks are expected to be pivotal, as markets look for definitive actions that could either stabilize or further unsettle the global economic landscape.