Global shares jump as US stocks soar after Trump pauses most tariffs

World markets soared on Thursday, with Japan’s benchmark jumping more than 9%, as investors welcomed US President Donald Trump’s decision to put his sharp tariff hikes on hold for 90 days, though he excluded China from the reprieve.

In early trading, Germany’s DAX initially gained more than 8%.

It was up 7.5% at 21,141.53 a bit later, while the CAC 40 in Paris gained 7.2% to 7,360.23.

Britain’s FTSE 100 surged 5.4% to 8,090.02.

However, US futures edged lower and oil prices also declined.

Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports.

The future for the S&P 500 was down 0.4% while that for the Dow Jones Industrial Average edged 0.2% lower.

Analysts had expected the global comeback given that US stocks had one of their best days in history on Wednesday as investors registered their relief over Mr Trump’s decision.

On Thursday, Japan’s benchmark Nikkei 225 jumped 9.1% to finish at 34,609.00, zooming upward as soon as trading began.

Australia’s S&P/ASX 200 soared 4.5% to 7,709.60.

South Korea’s Kospi gained 6.6% to 2,445.06.

Hong Kong’s Hang Seng added 2.4% to 20,750.65.

The Shanghai Composite rose 1.2% to 3,223.64.

Investors went “from fear to euphoria,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.

“It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Mr Trump has kept.

On Wall Street, the S&P 500 surged 9.5%, an amount that would count as a good year for the market.

It had been sinking earlier in the day on worries that Mr Trump’s trade war could drag the global economy into a recession.

But then came the words investors worldwide had been waiting and wishing for.

“I have authorised a 90 day PAUSE,” Mr Trump said, saying more than 75 countries are negotiating on trade and not retaliating against his latest increases in tariffs.

Treasury secretary Scott Bessent later told reporters that Mr Trump was pausing his so-called “reciprocal” tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.

China was a huge exception, though, with Mr Trump saying tariffs are going up to 125% against its products.

The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage.

US stocks are also still below where they were just a week ago, when Mr Trump announced worldwide tariffs on what he called “Liberation Day”.

But on Wednesday, at least, the focus on Wall Street was on the positive.

The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%.

The Nasdaq composite leaped 12.2%. The S&P 500 had its third-best day since 1940.

The relief came after doubts had crept in about whether Mr Trump cared about the financial pain the US stock market was taking because of his tariffs.

The S&P 500, the index that sits at the centre of many 401(k) accounts, came into the day nearly 19% below its record set less than two months ago.

That surprised many professional investors who had long thought that a president who used to crow about records for the Dow under his watch would pull back on policies if they sent markets reeling.

Wednesday’s rally pulled the S&P 500 index away from the edge of what is called a “bear market”.

That is what professionals call it when a run-of-the-mill drop of 10% for US stocks, which happens every year or so, graduates into a more vicious fall of 20%.

The index is now down 11.2% from its record.

In energy trading, benchmark US crude fell 81 cents to 61.54 dollars a barrel. Brent crude, the international standard, declined 93 cents to 64.55 dollars a barrel.

In currency trading, the US dollar fell to 146.77 Japanese yen from 147.38 yen.

The euro cost 1.0986 dollars, up from 1.0954 dollars.