Japan leads Asia stock market rebound on tariff talks but Singapore index falls 2.2%

SYDNEY – Most Asian markets rebounded on April 8 after a volatile session in the US overnight, as US President Donald Trump kept investors on edge with clashing tariff comments.

Japan’s Nikkei index jumped 5.6 per cent after plunging an eye-watering 7.8 per cent the previous day as US tariffs fuel market volatility.

The Nikkei rebound far outpaced other regional markets, with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer tasked with leading trade negotiations with Tokyo.

US business leaders have also begun speaking out about the damage to the economy and financial markets that could be wrought by Mr Trump’s global trade war, with BlackRock chief executive Larry Fink said most CEOs he talks to think the United States is in a recession.

However, Mr Trump dug in his heels over China, vowing additional 50 per cent levies if Beijing does not withdraw retaliatory tariffs on the US. Beijing said on April 8 it will never accept the “blackmail nature” of US tariff threats.

Still, China stocks rebounded as a group of state-linked funds known as the national team scooped up assets and the central bank promised loans to help stabilise the market.

Hong Kong’s Hang Seng Index jumped 3 per cent, clawing back some of the massive losses suffered the day before when it plunged 13.2 per cent.

China’s Shanghai Composite clawed back 0.8 per cent.

Seoul’s Kospi index rose 1.6 per cent, while Australia’s S&P/ASX200 index gained 1.7 per cent.

However, Singapore’s Straits Times Index (STI) was down 2.2 per cent at 10.29am, reversing a 0.6 per cent rise immediately after trading began. The STI plunged 7.5 per cent the previous day, its worst drop since the 2008 global financial crisis.

Singapore bank shares were once again hit: DBS was down 3.4 per cent at $37.95, while OCBC Bank fell 4 per cent to $14.85 and UOB lost 3.3 per cent to $32.13.

Taiwan stock benchmark sank 3 per cent, following its worst day ever on April 7, when it tumbled 10 per cent. The major semiconductor producer faces a 32 per cent tariff from Washington.

Playing catch up, Indonesia’s Jakarta Composite Index sank 9.2 per cent when trading opened following a long public holiday break, triggering a trading suspension.

“For now, it looks like news out of Washington will continue to drive the market’s swings, one way or the other,” said Mr Chris Larkin at E*Trade from Morgan Stanley. “Some of the market’s notable lows over the past few decades have been preceded by similar levels of volatility, although it’s always impossible to know when prices will eventually find their bottom.”

The US Ppresident signalled he could be open to some negotiations but said he wasn’t considering a pause on his plan to implement additional tariffs on dozens of countries despite outreach from trading partners eager to avoid the levies.

US stock futures rose after a three-day battering. Futures tied to the S&P 500 were up 0.9 per cent, while Nasdaq futures gained about 1 per cent. Dow futures jumped 444 points, or nearly 1.2 per cent.

Overnight, fears of an economic downturn led to sharp swings in US markets with the S&P 500 index nearing a bear market before finishing slightly

Often conflicting remarks from Mr Trump and his advisers underscored the chaotic approach that has befuddled markets, and the difficulty facing even the US’ staunchest partners as they look to negotiate with Trump. 

Stocks, bonds and commodities all swung wildly on April 7, as waves of volatility shook markets that struggled to digest a flood of headlines about Trump’s plans. In the most bizarre example, an erroneous report about the president’s willingness to consider a tariff pause briefly boosted US stocks on April 7 before the White House dismissed it as “fake news.”

“We should see a strong bounce at some point soon, but the process of repricing the market to its realistic economic outlook will take time,” said Mr Matt Maley at Miller Tabak. “There will be plenty of time to get aggressive when it becomes more evident that the worst of the decline is behind us.”

In commodities, oil gained on April 8 after tumbling to a four-year low in its previous session. Gold was little changed. BLOOMBERG, REUTERS