Asian stocks rebound sharply: Hong Kong stocks bounce back after a big dump, Nikkei pumps over 5%! The market bets on a turnaround in the trade war.

Asian markets open strong, shaking off tariff panic.

On April 8, the Asia-Pacific stock markets rebounded across the board, shaking off the panic selling triggered by U.S. President Trump's threat to impose more tariffs on China. Although the trade tensions between the U.S. and China remain unresolved, the market seems to hold a glimmer of hope for potential negotiation space, with major stock markets turning positive.

Nikkei and Topix lead the rise, Northeast Asia's stock markets show strong recovery momentum.

The Japanese stock market performed the best today. The Nikkei 225 index surged by 5.34%, while the Topix index soared by 5.53%, indicating that investors are heavily replenishing the stocks that dropped significantly in the previous trading day.

The South Korean market is also showing resilience, with the Kospi index rising by 2.26%, and the Kosdaq index, which is dominated by small and medium-sized stocks, increasing by 2.35%, demonstrating a significant recovery in market sentiment.

Hong Kong stocks stop falling and rebound, with technology stocks rising over 4%

The Hong Kong stock market also experienced a rebound on Tuesday. The Hang Seng Index rose by 2.25%, while the tech-heavy Hang Seng Tech Index surged by 4.17%. This is undoubtedly a much-needed rescue for the Hong Kong stock market, as on Monday, the Hang Seng Index had plummeted by more than 13%, marking its largest single-day drop since 1997.

Australia and China performed relatively mildly, with A-shares only slightly rising.

In contrast, other Asia-Pacific markets performed relatively modestly. Australia's S&P/ASX 200 index opened up 0.18%, while China's CSI index edged up 0.24%.

Although the A-shares did not rise significantly, this also shows that the market is gradually stabilizing after experiencing intense fluctuations the previous day.

Trump speaks again: If China does not make concessions, a 50% tariff will be imposed.

Amid the market rebound, there is still no shortage of noise. U.S. President Trump threatened again on Monday that if China does not cancel its retaliatory tariffs on U.S. goods, the U.S. will consider imposing an additional 50% tariff. This statement has reignited market concerns about an escalation of the trade war.

In addition, the Trump administration began implementing 10% unilateral tariffs on Saturday and is expected to launch a larger "reciprocal tariff" on April 9, and global investors are closely monitoring the relevant developments.

Expert: The market is still full of uncertainty, and confidence is weak pending policy clarity.

Analyst Murthy Grandhi from market research company GlobalData stated: "Asian stock markets experienced one of the most severe sell-offs in recent years yesterday, with panic and uncertainty causing indices to hit multi-year lows."

He further pointed out that the escalation of the trade war has further shaken the already fragile confidence of investors, and what the market needs most now is "policy clarification and progress in diplomatic communication" to truly stabilize.

U.S. stock market futures turn higher as investors bet on a stabilization opportunity

Affected by the strong rebound in the Asian market, U.S. stock futures have also risen accordingly. As of now:

S&P 500 futures rose by about 1%

Nasdaq 100 futures rose 1.1%

The Dow Jones Industrial Average futures surged by 476 points, an increase of 1.2%.

Despite this, the U.S. stock market remained in the red on Monday, with the Dow Jones Industrial Average down 0.91% to 37,965.60 points, the S&P 500 down 0.23% to close at 5,062.25 points, and only the Nasdaq index slightly up by 0.10%, closing at 15,603.26 points.

The rebound is not a trend reversal; the key still lies in the implementation of policies.

While the strong rally in Asia-Pacific equities today is somewhat reassuring to the market, most analysts believe that this rally is more due to a "technical rally" and short covering, and if the tariff standoff between the United States and China is not truly relaxed, the stock market may still be unable to shake off the turbulent pattern.

Investors should still cautiously observe the policy signals in the coming days, especially whether the next wave of tariffs will be implemented as scheduled on April 9, which will determine whether this rebound is merely a flash in the pan or the true beginning of market stabilization.

This article: Asian stocks rebound strongly: Hong Kong stocks plummet and then surge, Nikkei rises over 5%! The market bets on a breakthrough in the trade war, first appeared on Chain News ABMedia.