Hang Seng Index and Nikkei 225: Stocks Rally as Trade Tensions Ease

Wall Street Soars as Trump Eases Trade Pressure

US equity markets soared on Tuesday, April 22, as President Trump unexpectedly U-turned on China and the Fed. The Nasdaq Composite Index reversed Monday’s losses, rallying 2.71%, while the Dow and the S&P 500 advanced 2.66% and 2.51%, respectively.

President Trump eased concerns about the Fed’s policy independence following previous criticism of Fed Chair Powell’s rate stance. The Kobeissi Letter reported:

“President Trump says he has no intention of firing Fed Chair Powell.”

Crucially, signs of a de-escalation in the US-China trade war fueled the broader market rally, setting the tone for the Asian session on Wednesday, April 23.

CN Wire Reported:

“President Donald Trump expressed a more positive tone towards China in trade talks, stating that he plans to be “very nice” and expects China to reciprocate. He emphasized that China must reach a deal or risk losing access to the U.S. market, but did not feel the need to adopt a hardline stance with Chinese leader Xi Jinping. Trump’s comments marked a shift in rhetoric amid escalating trade tensions.”

Gold briefly surged to a record high of $3,500 before retreating to $3,381, ending the Tuesday session down 1.26%.

Hang Seng Rallies on Trade Developments

Asian markets followed Wall Street’s lead. The Hang Seng Index rose 1.74% on Wednesday morning as Washington’s softer tariff stance lifted risk appetite. The Hang Seng Tech Index gained 2.09%.

• Tech Stocks: Alibaba (09988.HK) and Baidu (09888.HK) jumped 3.91% and 2.51%, respectively.
• EV makers: NIO Inc. (09866.HK) gained 3.20%, while BYD Co. Ltd. (01211.HK) was up 2.93%, supported by optimism in the EV sector.

Brian Tyncangco at Stansberry Research highlighted recent EV advancements, stating:

“Huawei launches 1.5MW (that’s 1,500 kilowatts!) supercharger for electric trucks and passenger cars. Pretty soon, Chinese EV drivers will be charging up to nearly full faster than most people fill up with gasoline.”

However, Mainland China’s markets remained cautious. The CSI 300 and the Shanghai Composite Index dipped 0.01% and 0.13%, respectively, with investors awaiting details on trade talks.

Easing trade tensions may relieve pressure on regional stocks in hopes of softer tariffs on Japan and Australia.

Nikkei 225 Rallies as Yen Weakens

Japan’s Nikkei 225 rose 1.59% on Wednesday morning. Risk-on sentiment weighed on safe-haven assets. A softer Yen sent the USD/JPY pair up 0.21% to 141.871, boosting demand for export-linked stocks. A weaker Yen could improve the competitiveness of Japanese goods and boost corporate earnings.

Notable movers: Nissan Motor Corp. (7201) and Sony Corp. (6758) rallied 2.36% and 2.56%, respectively.

ASX 200 Rallies on Tariff Relief

Australia’s ASX 200 advanced 1.60% in morning trade. Banking, mining, and tech stocks led the gains. Hopes for a US-China trade deal buoyed risk appetite.

• BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) rallied 2.85% and 2.22%, respectively, tracking iron ore’s morning price gains.
• Banking stocks National Australia Bank (NAB) and Westpac Banking Corp. (WBC) rose 2.99% and 2.47%, respectively.
• Meanwhile, Northern Star Resources Ltd. (NST) plunged 7.74% as gold prices reversed.

Outlook: Trade, Stimulus, and Central Bank Signals

Easing trade tensions may relieve some pressure on global growth expectations. Yet, progress on negotiations remains key. Market sentiment will also hinge on the potential for additional Chinese stimulus and guidance from global central banks on tariffs and economic conditions.

As volatility persists, investors should consider positioning strategies that reflect rising geopolitical risk. For deeper analysis, see our latest market insights.