Asian markets gain amid trade tensions, Chinese yuan weakens to lowest level

Jakarta, Pintu News – Stock markets in the Asia-Pacific region saw a sharp rebound on Tuesday after recording a big drop the day before. On the other hand, the Chinese yuan exchange rate continued to weaken, reaching its lowest level since 2023.

This situation was influenced by rising trade tensions between the United States and China, following the threat of additional tariffs by US President Donald Trump. These conditions put pressure on global markets and emerging market currencies.

Asian Markets Rebound After Sharp Decline

The Japanese stock market led the gains with the Nikkei 225 index jumping 5.31%, while the Topix index rose 5.65%. These gains were in response to concerns raised by the tariffs announced by President Donald Trump. In Australia, the S&P/ASX 200 index added 1.92%, signaling a recovery in investor interest in risky assets.

The South Korean stock market also showed recovery, with the Kospi index rising 0.34% and the Kosdaq adding 0.96%. In Hong Kong, the Hang Seng index increased 1.58%, while the Hang Seng Tech index jumped 3.57%. This rebound came after the Hang Seng fell more than 13%, its biggest daily decline since 1997.

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Impact of Global Trade Tensions

Tensions between the United States and China are heating up after Trump threatened to impose additional tariffs of 50% if China does not lift import duties on US products. These retaliatory tariffs are scheduled to take effect from April 9, adding to the uncertainty in global markets. Investors continue to monitor the development of this trade policy, as it risks triggering a slowdown in economic growth.

Several other Asian markets showed significant impact from the tension. The Jakarta Composite Index fell sharply by 7.63% after trading resumed following a temporary halt. Meanwhile, Vietnam’s main index slumped 5.6% and Thailand’s SET index plunged more than 5%, hitting its lowest point since March 2020.

Wall Street Movement and Global Sentiment

Despite the Asian market rebound, the US stock market showed mixed movements. The Dow Jones index fell 0.91% to 37,965.60, recording back-to-back declines after the tariff announcement. The S&P 500 also fell 0.23% to 5,062.25. In contrast, the Nasdaq Composite edged up 0.10% and closed at 15,603.26.

US market futures gave positive signals with the S&P 500 up about 1% and the Nasdaq-100 up 1.1%. Dow Jones futures also increased by 476 points or 1.2%. These gains indicate investors’ hopes that market volatility will ease despite the looming global uncertainty.

China’s Yuan Weakens Amid Economic Pressure

China’s yuan fell to its lowest level since 2023 after the country’s central bank eased controls on its currency. The domestic yuan touched 7.34 per US dollar, or around Rp124,789 with a conversion of 1 USD = Rp16,995. This is the weakest point since September 11, 2023 and close to levels last seen during the 2008 global financial crisis.

Both the onshore and offshore yuan have each weakened about 1% against the US dollar this month. This weakness was triggered by concerns over an escalation of the trade war with the US, especially after the two countries imposed import duties on each other in the previous week. The Chinese government stated that it is ready to “fight to the end” in response to this economic pressure.

Conclusion

The strengthening of Asian markets indicates a return of confidence from investors despite the global uncertainties. On the other hand, pressure on Chinese currencies such as the yuan reflects the real impact of ongoing trade tensions.

This situation emphasizes how geopolitical dynamics and economic policies can affect financial markets and exchange rates globally. Under these conditions, vigilance and diversification remain important strategies for both crypto and conventional market participants and investors.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cryptopolitan. Asian markets trade higher; China yuan drops. Accessed April 9, 2025.
• Featured Image: Reuters