From fear to euphoria: Philippine, Asia stocks jump on Trump tariff pause (2025)

Updated at 3:28 pm on April 10, 2025

MANILA, Philippines — Philippine stocks surged along with rebounding Asian shares on Thursday as investors cheered United States President Donald Trump’s decision to back off on most of his tariffs.

The Philippine Stock Exchange Index (PSEi) closed higher by 1.19 percent to finish just below 6,100 on April 10, shedding some of its early gains as investors continued to gauge the global trade war.

The local bourse climbed by 71.48 points to close at 6,077.82.

The broader All Shares Index likewise added 1.12 percent, or 40.14 points, to close at 3,622.94.

“The market is up on the back of a relief rally in reaction to Trump’s decision to temporarily pause most reciprocal tariffs, including those on the Philippines,” said Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.

In morning trade, the PSEi went as high as 3.19 percent to 6,197.72, its opening value, mirroring the overnight euphoria on Wall Street.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investors were also elated by expectations that the Bangko Sentral ng Pilipinas (BSP) would ease its monetary policy.

As expected, the BSP ended up cutting the rate for overnight borrowing by 25 basis points to 5.5 percent after the stock market had closed.

READ: BSP resumes easing cycle amid tariff-led global headwinds

READ: Trump pauses most of his tariffs

Analysts had expected the regional comeback given that U.S. stocks had one of their best days in history Wednesday on a euphoric Wall Street, where investor hopes had run high that Trump would tone down the tariffs.

READ: US stocks soar on Trump tariff pause, oil prices jump

On Thursday, Japan’s benchmark Nikkei 225 jumped 8.3 percent in morning trading to 34,353.17, zooming upward as soon as trading began.

Australia’s S&P/ASX 200 soared 4.7 percent to 7,722.90. South Korea’s Kospi gained 5.5 percent to 2,419.37.

Hong Kong’s Hang Seng added 3.7 percent to 21,003.84. The Shanghai Composite edged up 1.5 percent to 3,232.86.

Stephen Innes, managing partner at SPI Asset Management, called the reaction “from fear to euphoria.”

‘Manageable risk’

“It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Trump has kept.

On Wall Street, the S&P 500 surged 9.5 percent, an amount that would count as a good year for the market. It had been sinking earlier in the day on worries that Trump’s trade war could drag the global economy into a recession. But then came the posting on social media that investors worldwide had been waiting and wishing for.

“I have authorized a 90-day PAUSE,” Trump said, after recognizing the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.

Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners, but maintaining his 10 percent tariff on nearly all global imports.

But trade war not over

China was a huge exception, though, with Trump saying tariffs are going up to 125 percent against its products. That raises the possibility of more swings ahead that could stun financial markets.

The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage. U.S. stocks are also still below where they were just a week ago, when Trump announced worldwide tariffs on what he called “Liberation Day.”

But on Wednesday, at least, the focus on Wall Street was on the positive. The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9 percent. The Nasdaq composite leaped 12.2 percent. The S&P 500 had its third-best day since 1940.

The relief came after doubts had crept in about whether Trump cared about the financial pain the U.S. stock market was taking because of his tariffs. The S&P 500, the index that sits at the center of many 401(k) accounts, came into the day nearly 19 percent below its record set less than two months ago.

That surprised many professional investors who had long thought that a president who used to crow about records for the Dow under his watch would pull back on policies if they sent markets reeling.

Escaping the bears, for now

Wednesday’s rally pulled the S&P 500 index away from the edge of what’s called a “bear market.” That’s what professionals call it when a run-of-the-mill drop of 10 percent for U.S. stocks, which happens every year or so, graduates into a more vicious fall of 20 percent. The index is now down 11.2 percent from its record.

Wall Street also got a boost from a relatively smooth auction of U.S. Treasuries in the bond market Wednesday. Earlier jumps in Treasury yields had rattled the market, indicating increasing levels of stress. Trump himself said Wednesday that he had been watching the bond market “getting a little queasy.”

Analysts say several reasons could be behind the rise in yields, including hedge funds and other investors having to sell their Treasury bonds to raise cash in order to make up for losses in the stock market. Investors outside the United States may also be selling their U.S. Treasuries because of the trade war. Such actions would push down prices for Treasuries, which in turn would push up their yields.

Regardless of the reasons behind it, higher yields on Treasuries add pressure on the stock market and push upward on rates for mortgages and other loans for U.S. households and businesses.

The moves are particularly notable because U.S. Treasury yields have historically dropped — not risen — during scary times for the market because the bonds are usually seen as some of the safest possible investments. This week’s sharp rise had brought the yield on the 10-year Treasury back to where it was in late February.

After approaching 4.50 percent in the morning, the 10-year yield pulled back to 4.34 percent following Trump’s pause and the Treasury’s auction. That’s still up from 4.26 percent late Tuesday and from just 4.01 percent at the end of last week.

In energy trading, benchmark U.S. crude fell 35 cents to $62.00 a barrel. Brent crude, the international standard, declined 48 cents to $65.00 a barrel.

In currency trading, the U.S. dollar fell to 146.82 Japanese yen from 147.38 yen. The euro cost $1.0966, up from $1.0954.