Global Markets Defy Trump Tariffs: US, Asian & European Stocks Rocket as Yen Joins Rally

Markets shrug off trade tensions with a bullish stampede—Wall Street to Tokyo ignores political noise.

Yen surges alongside regional equities

Japan's currency and Asian bourses stage synchronized climb, proving traders care more about liquidity than tariffs. Another day, another disconnect between fundamentals and trading floors.

Europe catches the risk-on fever

Frankfurt to Paris mirrors the rally—because nothing says 'stable markets' like simultaneous surges across three continents. Just don't ask about debt-to-GDP ratios.

Bonus cynicism: Another 'unexpected' rally that conveniently ignores the elephant in the room—central banks pumping liquidity like it's 2021.

Trump’s tariffs hit India and South Korea while Asia pulls back

Markets in Asia-Pacific traded mostly lower Thursday as investors processed Trump’s fresh round of tariffs and a steady policy decision from the Bank of Japan (BoJ).

The Japanese central bank left its short-term interest rate unchanged at 0.5%, its fourth straight meeting without a change. That call had been widely expected, but the reaction across asset classes was mixed.

The Japanese yen appreciated 0.49% against the US dollar, trading at 148.77, while yields on Japanese Government Bonds (JGBs) rose slightly across maturities. The 10-year yield increased by 1 basis point to 1.571%, the 5-year rose 1.6 basis points to 1.091%, the 20-year yield ticked up to 2.550%, and the 30-year yield rose just over 1 basis point to 3.096%.

Trump’s new tariff structure includes a 15% blanket rate on imports from South Korea and 25% duties on goods from India, alongside an extra, undefined “penalty”. That triggered a quick reaction from both stock and currency markets.

India’s Nifty 50 index dropped 0.56%, while the BSE Sensex slid 0.97% by 9:25 a.m. in Mumbai. In South Korea, auto stocks were hit hard, even as Samsung Electronics saw its shares rise, despite second-quarter profits coming in below expectations.

Meanwhile, Nissan Motor, based in Japan, posted a $530 million operating loss for the first quarter of its fiscal year. Still, its stock rose, a reaction analysts tied to improving forward guidance.

Europe steadies as investors await more earnings

In Europe, indexes showed signs of early optimism. Futures data from IG pointed to a mild gain at the open. London’s FTSE 100 was seen up 0.1%, Germany’s DAX projected a 0.2% gain, and Italy’s FTSE MIB aimed for a 0.3% rise. France’s CAC 40 was expected to open flat.

This came a day after European markets closed mixed on Wednesday. With second-quarter earnings season heating up across the region, investors were moving sector by sector. A heavy schedule of corporate results is lined up for Thursday, including Unilever, Shell, BMW, Sanofi, Renault, SocGen, Anglo American, Credit Agricole, and ArcelorMittal. Other names expected to report include London Stock Exchange Group, Euronext, AF-KLM, and Anheuser-Busch InBev.

While markets braced for those earnings, investors were also watching the Federal Reserve closely. At its meeting yesterday, the Fed left its benchmark interest rate unchanged in a range of 4.25% to 4.50%, but it wasn’t a unanimous call.

Fed Governor Michelle Bowman and Governor Christopher Waller both voted against the hold, preferring a more aggressive stance. When asked during a press conference whether the Fed was considering another rate MOVE in September, Chair Jerome Powell said plainly, “We’ve made no decisions.”

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