Overseas shares and U.S. futures rose Tuesday, led by gains in Tokyo, where the Nikkei 225 rose slightly more than 6% as markets recovered from the shocks of President Trump’s tariff increases.
The modest rebound for most markets came after a wild day on Wall Street, where stocks plummeted after Trump threatened to raise his double-digit tariffs.
China’s Commerce Ministry said early Tuesday that it would “fight to the end” and take unspecified countermeasures against the United States after President Donald Trump threatened another 50% tariff on Chinese imports.
Germany’s DAX rose 0.9% to 19,975.81, while the CAC 40 in Paris rose 1.3% to 7,018.79. Britain’s FTSE 100 rose 1.3% to 7,804.73.
According to Yahoo Finance, S&P 500 futures rose 1.61% early Tuesday, while Dow Jones Industrial Average futures rose 2.08% and Nasdaq Composite futures rose 1.33%.
In Tokyo, the Nikkei 225 closed just over 6% higher at 33,012.58.
Hong Kong recovered some lost ground, but not nearly as much as the 13.2% drop Monday, which marked the Hang Seng’s worst day since the 1997 Asian financial crisis.
The Hang Seng rose 1% to 20,036.03. The Shanghai Composite index rose 1.4% to 3,140.15 after the government’s investment fund, Central Huijin, directed state-owned enterprises to buy shares to support the market.
South Korea’s Kospi rose 0.3% to 2,334.23, while Australia’s S&P/ASX 200 increased 2.3% to 7,510.00.
Thailand and Indonesian markets, on the other hand, fell as they reopened after their respective holidays. The JSX index fell more than 9%, causing a brief suspension of trading in Jakarta. It had dropped 7.6% by mid-afternoon. Thailand’s SET fell 4.2%.
In Taiwan, the Taiex fell 4%, weighed down by losses at Taiwan Semiconductor Manufacturing Corp., or TSMC, the world’s largest computer chip manufacturer. Its stock dropped 3.8% on Tuesday.
On Monday, the S&P 500 fell 0.2%, the Dow fell 0.9%, and the Nasdaq rose 0.1% as investors waited to see what Mr. Trump would do next in his trade war. If other countries agree to trade agreements, he could reduce his tariffs and avoid a possible recession. Analysts warn that if he maintains tariffs indefinitely, stock prices may fall even further.