Asia-Pacific markets advanced on Friday, mirroring Wall Street’s gains as investor sentiment improved following U.S. President Donald Trump’s announcement of a reciprocal tariff review. The move signaled potential changes in global trade policies, though immediate action was not taken. Major indexes across Asia, including China’s CSI 300, Hong Kong’s Hang Seng, and South Korea’s Kospi, all saw gains, while Japan’s Nikkei 225 dipped slightly.

Stock Market Movements Across Asia-Pacific

Japan’s Nikkei 225 slipped 0.56%, while the broader Topix index remained unchanged. Despite recent economic concerns, market participants remained optimistic about Japan’s longer-term recovery trajectory. In South Korea, the Kospi index climbed 0.59%, while the small-cap Kosdaq outperformed with a 1.11% gain. Economic data showed that South Korea’s unemployment rate improved to 2.9% in January, down from a three-year high of 3.7% the previous month, indicating a stabilizing job market.

In China, the CSI 300 Index rose 0.7%, continuing its upward momentum as investors anticipated favorable policy adjustments. Hong Kong’s Hang Seng Index outperformed the region, surging 2.24%, driven by strong corporate earnings and improved investor sentiment. Australia’s S&P/ASX 200 rose 0.37%, maintaining its positive trend after reaching an intra-day record high in the prior session. Meanwhile, India’s Nifty 50 opened flat, but the BSE Sensex edged up 0.29%. Investors were awaiting India’s wholesale price inflation data for January, projected to rise 2.5% from 2.3% in December, according to LSEG estimates.

Singapore’s economy grew at a robust pace of 4.4% in 2024, marking its fastest expansion since 2021, according to the Ministry of Trade and Industry. Q4 GDP growth was recorded at 5% year-over-year, surpassing Reuters’ forecast of 4.7%. However, the Straits Times Index dipped 0.12% following the GDP report. Malaysia also posted strong economic performance, with its economy expanding 5.1% in 2024. Q4 GDP growth stood at 5%, exceeding the expected 4.8%, as reported by Bank Negara.

U.S. Market Gains and Tariff Policy Updates

U.S. markets continued their bullish momentum overnight, fueled by fresh inflation data and updates on trade policies. The Dow Jones Industrial Average climbed 342.87 points (0.77%) to 44,711.43, the S&P 500 gained 1.04% to reach 6,115.07, and the Nasdaq Composite surged 1.50% to 19,945.64. The market rally was further supported by President Trump’s announcement regarding reciprocal tariffs. In a newly signed memorandum, Trump outlined a plan to review tariff policies on foreign nations, arguing that non-tariff measures implemented by other countries constituted unfair trade practices. His statement suggested that the U.S. may take further action to level the playing field, which sparked mixed reactions among global investors.

Despite uncertainty surrounding future trade negotiations, investors remained optimistic, leading to a strong performance across major U.S. indices. Analysts expect continued market volatility as details of the tariff review unfold, with potential implications for international trade and global stock markets. As Asia-Pacific markets react to Wall Street’s movements and ongoing trade policy developments, investors will closely monitor macroeconomic indicators and geopolitical events that could shape future market trends.