Asian stocks rebound as Trump softens China rhetoric; Tokyo slumps amid political uncertainty

Most Asian markets rebounded Tuesday, tracking Wall Street’s rally, after US President Donald Trump eased his tone toward China following renewed tariff threats. However, Tokyo stocks declined amid growing political turmoil in Japan.

Global investors returned to risk assets after Trump reassured on social media that “it will all be fine” and expressed willingness to “help” China, calming fears of a reignited trade war. His earlier remarks threatening 100% tariffs and criticizing Beijing’s rare earth export curbs had rattled markets.

The rebound saw the Nasdaq jump more than 2%, while the S&P 500 and Dow Jones each gained over 1% on Monday, recovering much of Friday’s losses. Asian markets followed the trend, with gains in Hong Kong, Shanghai, Seoul, Singapore, Sydney, Taipei and Manila, though Wellington and Jakarta slipped.

Tech shares remained strong, boosted by news that US chipmaker Broadcom partnered with OpenAI to supply 10 gigawatts of computing power. The deal follows OpenAI’s recent AI infrastructure collaborations with Nvidia, AMD, Oracle, Samsung and SK Hynix.

In Japan, markets fell as political uncertainty deepened after the ruling coalition collapsed when junior partner Komeito quit the alliance. The turmoil casts doubt on whether ruling party leader Sanae Takaichi — who recently made history as Japan’s first female party head — will secure parliamentary approval to become prime minister.

Commodity markets extended their rally, with silver hitting a record $52.90 per ounce and gold touching nearly $4,150, as investors sought safe havens amid global economic and political uncertainty.

Key figures at around 0230 GMT

Tokyo - Nikkei 225: DOWN 1.2 percent at 47,520.57 (break)
Hong Kong - Hang Seng Index: UP 0.3 percent at 25,955.27
Shanghai - Composite: UP 0.5 percent at 3,910.17
Euro/dollar: UP at $1.1571 from $1.1568 on Monday
Pound/dollar: UP at $1.3343 from $1.3332
Dollar/yen: UP at 152.42 yen from 152.31 yen
Euro/pound: DOWN at 86.72 pence from 86.77 pence
West Texas Intermediate: UP 0.4 percent at $59.75 per barrel
Brent North Sea Crude: UP 0.4 percent at $63.56 per barrel
New York - Dow: UP 1.3 percent at 46,067.58 (close)
London - FTSE 100: UP 0.2 percent at 9,442.87 (close)