Dhaka: Most stock markets gained Thursday even as President Donald Trump’s new tariffs on dozens of countries took effect, with investors eyeing exemptions from his threatened 100-percent levy on semiconductors. Sentiment was also lifted by hopes of easing geopolitical tensions after the Kremlin said Trump and Russia’s leader Vladimir Putin were set to meet for talks in the coming days.
According to Bangladesh Sangbad Sangstha, Paris and Frankfurt each increased by around one percent in midday deals, while London was a rare faller ahead of an expected interest-rate cut by the Bank of England. Jochen Stanzl, chief market analyst at CMC Markets, remarked that Trump’s complex web of global tariffs is now in place, yet the stock market appears largely unaffected. He noted that buying was driven by the potential for an interest rate cut by the Federal Reserve in just over a month and a possible meeting between Trump, Ukraine leader Volodymyr Zelensky, and Putin as early as next week.
The dollar faced challenges as the United States started imposing higher tariffs on goods from several trading partners, including the European Union and India, as part of Trump’s efforts to reshape global trade in America’s favor. Despite Washington’s imposition of a 39-percent tariff on Swiss goods, Switzerland’s stock market still saw gains of around one percent. Meanwhile, Washington announced an increase in Indian tariffs to 50 percent shortly before the new levies took effect.
Asian markets extended gains following a robust day on Wall Street, with tech stocks benefiting from chip-tariff exemptions for companies investing heavily in the United States or committed to do so. Apple-linked stocks rose after the tech giant pledged to invest an additional $100 billion in the United States. Tokyo and Hong Kong closed positively on Thursday, with Taipei leading the way thanks to a surge in Taiwanese chip-making giant TSMC. TSMC climbed five percent as Taipei announced it would be exempt from Trump’s threatened levies on the sector.
In South Korea, Seoul-listed Samsung, which is also investing billions into the world’s number one economy, rose more than two percent while its rival SK hynix was up more than one percent. However, some other Asian manufacturers, including Japan’s Tokyo Electron and chipmaker Renesas, faced challenges. Analysts expressed optimism that the final level of chip tariffs might be lower despite the initial threat.
Shanghai closed higher after data revealed stronger-than-expected Chinese exports, with increased shipments to the EU and Southeast Asian nations offsetting a decrease in those to the United States. Markets were already buoyed this week by expectations of a Federal Reserve rate cut following weak US jobs data that indicated a weakening economy.
Oil prices rose after Trump threatened penalties on countries importing Russian oil, following his additional tariffs on India. In other corporate news, shares in Sony surged more than four percent after the PlayStation-maker raised its annual profit forecasts, citing strong performance in its key gaming business and a smaller-than-expected negative impact of US tariffs.
Key figures around 1030 GMT included London’s FTSE 100 down 0.5 percent at 9,121.10 points, while Paris’ CAC 40 and Frankfurt’s DAX were up 1.1 percent and 1.4 percent respectively. Tokyo’s Nikkei 225 increased by 0.7 percent, Hong Kong’s Hang Seng Index by 0.7 percent, and Shanghai’s Composite by 0.2 percent. The New York Dow was up 0.2 percent at 44,193.12. In currency, the Euro/dollar was up at $1.1667, the Pound/dollar at $1.3366, and the Dollar/yen was down at 147.36 yen. Euro/pound was up at 87.28 pence. Brent North Sea Crude and West Texas Intermediate both rose by 0.6 percent, priced at $67.29 and $64.74 per barrel, respectively.