[SINGAPORE] Singapore stocks bounced after Trump announced on Wednesday a 90-day pause to his steep reciprocal tariffs on his “worst offender” countries, lowering them to 10 per cent during the period.
The Straits Times Index (STI) rallied as much as 8.7 per cent shortly after the market opened, up 295.5 points to reach 3,688.2. This comes after eight consecutive days closing in the red for the index, including Monday’s 7.5 per cent plunge.
Singtel was the most actively traded counter by volume reaching 10.1 million shares, with the stock trading higher at S$3.62 in a 6.5 per cent jump.
Across the broader market, 106.6 million shares worth S$289.8 million changed hands, with gainers outnumbering losers by 215 to 10.
Other actively traded counters included Genting Singapore with 9.2 million shares traded, climbing 5.2 per cent to S$0.705.
Local banks shot up higher after the bell. DBS rose 10 per cent or S$3.71 to S$40.87. OCBC hiked 10.3 per cent or S$1.49 to S$15.91, while UOB jumped 10.2 per cent or S$3.15 to S$34.14.
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Across Asia, the Nikkei 225 in Japan surged 8.8 per cent shortly after opening, while South Korea’s Kospi index jumped 5 per cent. Australian stocks on the ASX 200 climbed 5.1 per cent.
Wall Street stocks rallied after Trump’s announcement on social media. The Dow Jones Industrial Average surged 7.9 per cent to 40,608.45, while the S&P 500 Index rallied 9.5 per cent to 5,456.90. The tech-heavy Nasdaq Composite Index rocketed 12.2 per cent to 17,124.97.
China, however, would not be reprieved from levies. Trump instead raised tariffs on goods from China to 125 per cent, following Beijing’s 84 per cent tariff retaliation yesterday. This was due to China’s “lack of respect” to the world’s markets, Trump indicated.
European shares tumbled on Wednesday following China’s retaliatory tariffs on US imports, with the pan-European Stoxx 600 dropping 3.5 per cent to 469.89 points. Healthcare stocks lead losses after Trump threatened more sector-specific tariffs, including on the previously-exempt pharmaceuticals sector.
