Asian Stocks Rebound on Tech Rally Despite Trade War Worries

Asian stock markets rebounded modestly on Tuesday following sharp losses in the previous session, as a rally in U.S. tech stocks and bargain-hunting lifted investor sentiment. Most major regional indices climbed, even as global trade tensions continued to weigh on markets.

Japan’s Nikkei 225 led gains, surging nearly 7%, with the broader TOPIX also rising over 7%. The rally was driven by a weaker yen and strong performance in tech stocks. Shares of chipmakers Tokyo Electron and Advantest jumped over 10% and 12%, respectively, while SoftBank Group surged more than 12%.

The yen’s decline eased pressure on Japanese exporters, further boosting market confidence. The bounce in U.S. tech stocks overnight also encouraged dip-buyers across Asia after three days of declines.

However, investor caution remained as U.S.-China trade tensions escalated. President Donald Trump threatened an additional 50% tariff on Chinese goods unless Beijing rolls back its recent 34% tariff hike by April 8. China responded with a vow to retaliate, potentially worsening the ongoing trade conflict.

Despite the tension, Chinese stocks rose after several state-owned firms pledged to increase equity investments to stabilize markets. The CSI 300 gained 0.5%, and the Shanghai Composite added 0.7%. The central bank also supported Central Huijin Investment’s move to boost index fund holdings and pledged re-lending support if needed.

Hong Kong’s Hang Seng index bounced back with a 3% rise, recovering from a steep 15% drop in the prior session. Australia’s ASX 200 climbed nearly 2%, and South Korea’s KOSPI rose 1%. India’s Nifty 50 futures pointed to a higher open. In contrast, Singapore’s Straits Times Index fell over 2%, continuing its downward trend.

Overall, Asian markets showed resilience, but volatility remains amid deepening U.S.-China trade tensions.