Global markets rebound as Nikkei surges after tariff turmoil

World shares and US futures advanced on Tuesday, led by a strong rebound in Tokyo, where the Nikkei 225 jumped just over 6 per cent, as markets stabilised following the turmoil triggered by US President Donald Trump’s tariff threats.

The rebound came after a volatile session on Wall Street, where stocks tumbled as Trump threatened to raise US tariffs on Chinese imports by another 50 per cent. In response, China’s Commerce Ministry vowed to “fight to the end” and pledged unspecified countermeasures.

In Europe, Germany’s DAX rose 0.9 per cent to 19,975.81, while France’s CAC 40 gained 1.3 per cent to 7,018.79. The UK’s FTSE 100 also advanced 1.3 per cent to 7,804.73.

US futures pointed to further gains, with the S&P 500 up 1.5 per cent and the Dow Jones Industrial Average rising 1.9 per cent in early trading.

Asia’s recovery was led by Tokyo, where the Nikkei 225 closed at 33,012.58, up slightly over 6 per cent. Hong Kong’s Hang Seng index rose 1 per cent to 20,036.03, clawing back part of Monday’s 13.2 per cent plunge — its worst since the 1997 Asian financial crisis. The Shanghai Composite Index climbed 1.4 per cent to 3,140.15 after China’s Central Huijin investment fund directed state-owned firms to support the market by purchasing shares.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama