Asia-Pacific Markets Rally Following Trump Tariff Concessions: Key Insights on Rising Japanese 10-Year Bond Yields

As the sun rose over Seoul on January 1, 2024, many gathered on a footbridge to enjoy the first sunrise of the year, taking in the beautiful city skyline.

In the Asia-Pacific markets, most indices saw a positive shift on Thursday. This followed a rise in Wall Street, partly due to a delay announced by U.S. President Donald Trump on tariffs for some automakers. The Nikkei 225 index in Japan climbed 0.77%, finishing at 37,704.93, while the Topix index jumped 1.22% to close at 2,751.41. Notably, Japanese government bond yields reached their highest point since 2009.

South Korea’s Kospi rose 0.7%, closing at 2,576.16. In contrast, the smaller Kosdaq index dropped by 1.61%, ending at 734.92. Meanwhile, February’s consumer inflation in South Korea increased by 2% compared to the previous year, slightly above estimates.

Hong Kong’s Hang Seng Index opened up 2.47%, and mainland China’s CSI 300 saw a 1.38% gain to close at 3,956.24. The Chinese government announced plans to increase its fiscal deficit to around 4% of GDP, which indicates a significant policy shift. In Australia, the S&P/ASX 200 index slipped 0.57%, finishing at 8,094.7.

The White House recently announced a one-month delay on tariffs for certain automakers that meet USMCA guidelines. This news contributed to the positive sentiment in U.S. markets, which all closed higher. The Dow Jones gained 485.60 points, or 1.14%, finishing at 43,006.59. The S&P 500 rose by 1.12% to reach 5,842.63, and the Nasdaq Composite grew 1.46%, ending at 18,552.73.

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