World markets advance as tech shares are boosted by Trump's exemption
for tariffs on electronics
[April 14, 2025] By
JIANG JUNZHE
HONG KONG (AP) — Asian markets rallied on Monday as tensions over trade
eased slightly after U.S. President Donald Trump said electronics such
as computer chips, smart phones and laptops would not be subject to the
same high import duties as some other products.
U.S. futures also gained after a rally Friday on Wall Street. However, a
weaker U.S. dollar and lower oil prices hinted at persisting worries
over the direction of Trump’s trade war.
In early European trading, Germany's DAX gained 1.9% to 20,752.94, while
the CAC 40 in Paris was up 1.8% at 7,235.36. Britain's FTSE 100 added
1.6% to 8,091.14.
The future for the S&P 500 gained 1.1% while that for the Dow Jones
Industrial Average was up 0.6%.
Asian shares logged sturdy gains. Japan's Nikkei 225 rose 1.2% to
33,982.36 and South Korea's Kospi gained 1% to 2,455.89.
Shares in technology companies surged, with Tokyo Electron up 1.4% and
Advantest, a testing equipment maker, up 4.9%. South Korea's biggest
company, Samsung Electronics, gained 1.8%.
Hong Kong's Hang Seng jumped 2.3% to 21,397.20, while the Shanghai
Composite index picked up 0.8% to 3,262.81 after the government reported
that China's exports surged 12.4% in March from a year earlier.
U.S. President Donald Trump said he was temporarily exempting
smartphones, computers and other electronics from his tariffs after
China announced Friday that it was boosting its tariffs on U.S. products
to 125% in the latest tit-for-tat increase following Trump’s escalations
on imports from China.
The Chinese Ministry of Commerce said Trump's move was “a small step”
toward fixing its wrongful action of what Trump calls reciprocal
tariffs. It urged him to completely cancel them.
Rising tensions between the world’s two largest economies could cause
widespread damage and a possible global recession, even after Trump
recently announced a 90-day pause on some of his tariffs for other
countries, except for China.
Australia’s S&P/ASX 200 added 1.3%, closing at 7,748.60.
The Taiex fell 0.1% in Taiwan, whose economy is heavily dependent on
exports of computer chips and other high-tech goods after Trump said the
new chip tariffs will be announced “over the next week”.
On Friday, the S&P 500 rose 1.8%, capping a chaotic and historic week.
The Dow gained 1.6% and the Nasdaq composite jumped 2.1%.
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Currency traders watch monitors near a screen showing the Korea
Composite Stock Price Index (KOSPI) at the foreign exchange dealing
room of the KEB Hana Bank headquarters in Seoul, South Korea,
Monday, April 14, 2025. (AP Photo/Ahn Young-joon)
 Stocks kicked higher as pressure
eased a bit from within the U.S. bond market. It’s typically the
more boring corner of Wall Street, but it’s been flashing serious
enough signals of worry this week that it’s demanded investors' and
Trump’s attention.
The yield on the 10-year Treasury was trading at 4.47% early Monday.
On Friday, it topped 4.58% in the morning, up from 4.01% a week ago.
That’s a major move for a market that typically measures things in
hundredths of a percentage point.
Bond yields typically fall in times of alarm. Investors outside the
United States could be selling their U.S. bonds because of the trade
war, and hedge funds could be selling whatever’s available to raise
cash to cover other losses. More worryingly, doubts may be rising
about the United States’ reputation as the world’s safest place to
keep cash because of Trump’s frenetic, on-and-off tariff actions.
Gold, considered a safe haven for investors, was trading at $3,244
an ounce.
A report on inflation at the wholesale level came in better than
expected. But it's a backward looking indicator, measuring March’s
price levels. The worry is that inflation will rise in coming months
as Trump’s tariffs make their way through the economy. And that
could tie the Fed’s hands.
Friday’s swings came after a set of stronger-than-expected profit
reports from some of the biggest U.S. banks, which traditionally
help kick off each earnings reporting season.
JPMorgan Chase, Morgan Stanley and Wells Fargo all reported stronger
profit for the first three months of the year than analysts
expected. JPMorgan Chase rose 4%, Morgan Stanley added 1.4% and
Wells Fargo lost 1%.
In other trading early Monday, U.S. benchmark crude oil dropped 10
cents to $61.40 per barrel, and Brent crude, the international
standard, lost 10 cents to $64.66 per barrel.
The U.S. dollar dropped to 142.68 Japanese yen from 143.91 yen. The
euro climbed to $1.1398 from $1.1320.
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