Asian Markets Rally as Trump Eases Tariff Stance; Sensex, Nifty Gain on Positive Global Cues
Asian markets surged following Wall Street’s strong overnight performance after US President Donald Trump softened his position on tariffs for Mexico and Canada. Indian stock indices, Sensex and Nifty, opened higher on Thursday, buoyed by global optimism as Trump granted a one-month exemption on new import tariffs for US automakers.
Key Drivers of the Market Rally:
1️⃣ China Stimulus Hopes – Investors anticipate further stimulus from Chinese authorities to counter economic pressures from the ongoing US-China trade war. This lifted base metal prices, pushing the Nifty Metal index up nearly 2%. “Base metals rallied in Asian trade on expectations of additional Chinese stimulus,” noted Daniel Hynes, senior commodity strategist at ANZ Bank.
2️⃣ Positive Global Cues – Asian markets followed Wall Street’s rally as Trump softened his tariff stance. South Korea’s Kospi gained 0.7%, while Hong Kong’s Hang Seng surged over 3%. US markets also closed higher:
- S&P 500 rose 1.1% to 5,842.63
- Dow Jones climbed 1.3% to 43,006.59
- Nasdaq Composite gained 1.46% to 18,552.73
Meanwhile, better-than-expected China manufacturing PMI data further boosted investor sentiment.
3️⃣ Weaker Dollar Index – The US Dollar Index dropped to a four-month low of 104.3, benefiting emerging markets like India. “A continued decline in the dollar may ease FII selling, supporting further market gains,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
4️⃣ Crude Oil Prices Drop – Brent crude fell below $70 per barrel after OPEC+ announced plans to increase output from April. This benefits Indian oil marketing companies (OMCs), which extended gains for the fourth straight session. “Concerns over global demand and trade war escalation have pressured oil prices,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
5️⃣ RBI Liquidity Measures – The Reserve Bank of India (RBI) injected liquidity via open market purchases and USD/INR swaps worth ₹1.9 lakh crore. A $10 billion swap on February 28 received strong demand, aiding financial stocks like Shriram Finance, Bajaj Finance, and Bajaj Finserv, which rose nearly 3%.
Technical Outlook:
Anand James, Chief Market Strategist at Geojit Financial Services, highlighted that Nifty’s close above 22,400 confirms a morning star candlestick pattern, indicating a potential uptrend.
- Key Resistance: 22,513, with momentum possibly pushing towards 23,000
- Support Level: 22,270; a break below 22,190 may challenge the bullish outlook
Disclaimer: The views expressed are those of market experts. Investors should consult certified professionals before making financial decisions.
