Asian Markets Climb as Trade Truce Boosts Confidence

On August 12, 2025, Asian stock markets climbed broadly higher as investors welcomed a 90-day extension of the U.S.–China tariff truce, announced earlier by President Trump. Japan’s Nikkei index jumped to a historic high, led by strong performances in tech stocks following a holiday lull. Australia’s ASX also reached new heights, buoyed by expectations of an interest rate cut from its central bank. In contrast, China’s major blue-chip index held steady, and Hong Kong’s Hang Seng slipped modestly.
General sentiment has improved recently, underpinned by hopes for U.S. Federal Reserve rate cuts and robust corporate earnings. The extended trade pause provides markets with a period of relative calm before key upcoming events—including U.S. inflation figures, the RBA’s policy decision, and the anticipated Trump–Putin summit on Ukraine. Meanwhile, commodity and currency markets saw limited movement: gold prices relaxed after tariffs on imported gold bars were ruled out, oil held steady, and digital currencies retracted slightly after an earlier rally.