Asian Markets Rally on April 10 Despite US-China Tariff Hikes

Asian stock markets, particularly in China and Hong Kong, surged on Thursday, April 10, 2025, despite escalating trade tensions between the U.S. and China. The CSI300 Index and Shanghai Composite Index both increased by 1.4%, while Hong Kong's Hang Seng Index jumped 3.5%, driven by gains in tech stocks. This rally occurred even after the U.S. raised tariffs on Chinese goods. Investors seemed to shrug off the tariff increase, possibly anticipating further negotiations. Some analysts suggested the impact of additional tariffs might be limited. Mainland investors displayed confidence, with substantial purchases of Hong Kong shares via the Stock Connect scheme. However, BCA Research downgraded Chinese offshore stocks from neutral to underweight, interpreting U.S. trade actions as a form of economic warfare. Major Chinese brokerages pledged to stabilize domestic share prices, and numerous listed companies planned stock buybacks. The situation remains fluid, with global markets closely monitoring developments and potential resolutions to the trade dispute.