Asia-Pacific markets experienced modest gains on Tuesday, April 29, 2025, as investors assessed the potential impacts of U.S. President Donald Trump’s tariffs and awaited key economic data from Wall Street.​

Market Movements

  • India: The Nifty 50 index rose by 0.28% to 24,394.6, while the BSE Sensex climbed 0.29% to 80,445. These gains were bolstered by increased foreign investment and optimism over a potential U.S.-India trade agreement. ​
  • South Korea: The Kospi index increased by 0.63%, with the small-cap Kosdaq adding 1.03%.​
  • Australia: The S&P/ASX 200 advanced 0.96%, reaching its highest level since March 6, driven by gains in the basic materials, healthcare, and consumer cyclicals sectors.​
  • Mainland China: The CSI 300 index fell by 0.13%, while the Shanghai Composite Index declined by 0.06%.​
  • Hong Kong: The Hang Seng Index pared gains to 0.12%.​
  • Japan: Markets were closed for a public holiday.​

Investor Sentiment

Investors remained cautious due to ongoing trade tensions between the U.S. and China. President Trump’s administration has imposed tariffs of up to 145% on Chinese goods, with China retaliating with tariffs of up to 125% on U.S. exports. These measures have raised concerns about a potential global recession, as several companies have lowered profit forecasts amid economic uncertainty.

Despite these concerns, some optimism emerged as President Trump signaled a willingness to ease certain tariffs, particularly on auto parts used in U.S. manufacturing. This development provided a temporary boost to markets, with Asian stocks reaching their highest levels in a month.

Currency and Commodity Markets

  • Indian Rupee: The rupee appreciated marginally by 0.07% against the U.S. dollar, reaching 85.0750, supported by increased equity inflows from foreign banks and a struggling U.S. dollar.​
  • Malaysian Ringgit: The ringgit strengthened to 4.3330 against the U.S. dollar, its highest level since November 6, 2024.​
  • Australian Dollar: The Australian dollar gained 0.22% against the U.S. dollar, trading at 0.6442.​
  • Taiwanese Dollar: The Taiwanese dollar appreciated 0.4% against the U.S. dollar, reaching 32.332.​
  • Spot Gold: Gold prices slid by 0.33% to $3,330.87 per ounce, reversing gains from the previous session as investors monitored developments in U.S.-China trade negotiations.​

Outlook

Market participants are closely watching upcoming economic reports from Wall Street, including Q1 GDP growth and April job data, to gauge the health of the U.S. economy. Analysts warn that sustained tariffs could trigger a recession, with several companies already lowering profit forecasts amid economic uncertainty. ​

In India, the stock market’s positive momentum is expected to continue, fueled by foreign investment and hopes for a favorable trade agreement with the U.S. However, geopolitical tensions and global economic uncertainties remain key risks that investors are monitoring closely. ​