{"id":51841,"date":"2025-08-11T20:08:39","date_gmt":"2025-08-12T00:08:39","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-extended-us-china-tariff-truce-asia-sees-gains\/51841\/"},"modified":"2025-08-11T20:08:39","modified_gmt":"2025-08-12T00:08:39","slug":"global-markets-react-to-extended-us-china-tariff-truce-asia-sees-gains","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-extended-us-china-tariff-truce-asia-sees-gains\/51841\/","title":{"rendered":"Global Markets React to Extended US-China Tariff Truce, Asia Sees Gains"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong> has extended the <strong>90-day suspension of higher tariffs<\/strong> on China, pushing the deadline to early November and easing immediate trade tensions.<\/li>\n<li>Despite the truce extension, China will <strong>maintain measures to suspend or remove non-tariff actions<\/strong> against the US and will <strong>retain an additional 10% tariff rate<\/strong> on certain US imports.<\/li>\n<li><strong>Japanese equities<\/strong> surged, with the <strong>TOPIX<\/strong> hitting a <strong>record high<\/strong> and the <strong>Nikkei 225<\/strong> reaching its highest level since July 2024, buoyed by easing tariff worries and strong corporate earnings.<\/li>\n<li><strong>Singapore<\/strong> has raised its <strong>2025 growth forecast<\/strong> to <strong>1.5%-2.5%<\/strong> from an earlier 0%-2% range, following a <strong>4.4% year-over-year GDP rise<\/strong> in the second quarter.<\/li>\n<li><strong>Oil prices<\/strong> held near a <strong>two-month low<\/strong>, with <strong>WTI<\/strong> at <strong>$64.11 a barrel<\/strong> and <strong>Brent<\/strong> at <strong>$66.63<\/strong>, as the extended tariff pause alleviated some market concerns.<\/li>\n<\/ul>\n<p>Global financial markets are reacting to the latest developments in US-China trade relations, with US President <strong>Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong> extending the <strong>90-day pause<\/strong> on higher tariffs against China until early November. This decision, signed via an executive order on August 11, prevents tariffs on Chinese goods from reverting to peak levels of up to <strong>145%<\/strong> and Chinese tariffs on US goods from hitting <strong>125%<\/strong>, which would have effectively created a trade embargo. The extension aims to provide more time for the two nations to finalize a comprehensive trade deal.<\/p>\n<p>However, a joint statement from the China-US Economic and Trade Meeting in Stockholm indicates that while the US will continue to suspend 24 percentage points of its additional tariff rate on Chinese goods, it will <strong>retain a 10% ad valorem rate<\/strong>. Similarly, China will also <strong>retain an additional 10% tariff rate<\/strong> on US imports and will <strong>maintain all necessary administrative measures to suspend or remove non-tariff countermeasures<\/strong> against the US. This reflects a continued, albeit de-escalated, state of trade friction. Currently, imports from China are subject to a <strong>30% tariff<\/strong>, including a <strong>10% base rate<\/strong> and a <strong>20% fentanyl-related tariff<\/strong>.<\/p>\n<p>The easing of trade tensions has had a noticeable impact on commodity markets, with <strong>oil prices<\/strong> holding near a <strong>two-month low<\/strong>. <strong>West Texas Intermediate (WTI)<\/strong> traded at <strong>$64.11 a barrel<\/strong>, while <strong>Brent<\/strong> closed at <strong>$66.63<\/strong>, with prices pressured by an ongoing global surplus after OPEC+ reversed 2023 supply cuts.<\/p>\n<p>In Asian markets, <strong>Japanese equities<\/strong> soared, with the <strong>TOPIX<\/strong> index closing at a <strong>record high<\/strong> of <strong>2,987.92<\/strong> and the <strong>Nikkei 225<\/strong> climbing to <strong>41,059.15<\/strong>, its highest level since July 2024. This rally was attributed to easing concerns over US tariffs and increased investor optimism regarding the strong performance of domestic firms. Companies like <strong>Sony Group<\/strong> (<a href=\"\/stock\/SONY\">SONY<\/a>) saw significant jumps after raising their full-year operating profit forecasts, while financial institutions such as <strong>Mitsubishi UFJ Financial Group<\/strong> (<a href=\"\/stock\/MUFG\">MUFG<\/a>) and <strong>Sumitomo Mitsui Financial Group<\/strong> (<a href=\"\/stock\/SMFG\">SMFG<\/a>) also gained. Meanwhile, <strong>Japan&#39;s M2 Money Stock<\/strong> for July rose by <strong>1.0% year-over-year<\/strong>, following a 0.9% increase in the previous month, and <strong>M3 Money Stock<\/strong> increased by <strong>0.6%<\/strong>.<\/p>\n<p><strong>Singapore&#39;s economy<\/strong> showed robust performance, with its <strong>final second-quarter GDP<\/strong> rising <strong>4.4% year-over-year<\/strong>, in line with estimates and extending the 4.1% growth from the previous quarter. This better-than-expected performance has led Singapore to raise its <strong>2025 growth forecast<\/strong> to a range of <strong>1.5%-2.5%<\/strong> from an earlier projection of 0%-2%. The Ministry of Trade and Industry noted that the improved outlook takes into account better first-half performance, where the impact of the trade war was less severe than anticipated.<\/p>\n<p>Separately, the <strong>Trump administration<\/strong> has reached an unusual agreement with US semiconductor giants <strong>Nvidia<\/strong> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and <strong>Advanced Micro Devices<\/strong> (<a href=\"\/stock\/AMD\">AMD<\/a>), requiring them to pay the US government <strong>15% of their revenue<\/strong> from certain <strong>AI chip sales to China<\/strong> in exchange for export licenses. This deal, confirmed by President Trump, has raised concerns among experts and lawmakers regarding potential corporate and national security risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US President Donald Trump has extended the 90-day suspension of higher tariffs on China, pushing the deadline to 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