Asian stocks up today, after President Trump extends tariff truce with China 

Asian stocks rose after Donald Trump’s decision to extend their tariff truce for another 90 days. President Trump signed an executive order extending the pause on higher tariffs on China until 10 November. In spite of this extended truce, tariffs on Chinese goods currently are as high as 50%. 

Market Reactions 

As of 9:00 AM on August 12, the MSCI Asia Pacific Index rose by 1.19%, or 0.57 points and was trading at 210.19. The index’s positive performance was largely driven by the Nikkei-225, which is at a record high of 42,926.00, up by 2.64% at this time.
 

The Shanghai Composite is up by 0.51%, or 18.78 points, at 3,666.33, at this time. However, Hong Kong’s Hang Seng index is largely flat and is up by a mere 0.0435, or 10.64 points, trading at 24,917.45. Furthermore, the Korea Composite Stock Price Index (KOSPI) is also up by 0.41%, or 13.17 points, at 3,219.94.  

While the tariff hike pause provides a positive sense of calm for the markets and investors, analysts remain cautious as there is still uncertainty about the tariffs going forward. It remains to be seen how the Asian stocks perform throughout the day. Investors will also be keeping an eye on other economic data, mainly the upcoming US inflation report, which is expected to provide clues on the Federal Reserve’s future interest-rate decisions. 

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Source: Nikkei