Markets woke up smiling on Thursday as Japan’s stock exchange roared to life following a surprise move by U.S. President Donald Trump: a suspension of newly imposed tariffs that had rattled global trade nerves.
The Nikkei 225, Tokyo’s main stock index, soared by 2,664.62 points—an astonishing 8.4% leap—within just the first hour of morning trading, settling at 34,378.65 points. It marked one of the biggest one-day jumps the market has seen in years.
The bullish run followed Trump’s announcement late Wednesday of a 90-day pause on certain tariffs, signaling a temporary thaw in his heated trade battles. Though a 10% universal customs duty will still apply during this grace period, the move was enough to boost investor confidence in Asia’s biggest markets.
“This pause is a breather markets were hoping for,” said one Tokyo-based analyst. “Even if it’s temporary, the relief is real.”
But not everyone’s getting a break. Trump’s administration raised tariffs on Chinese goods to a hefty 125%, keeping pressure on Beijing while offering Japan and other allies a narrow window of economic calm.
The ripple effect was immediate—U.S. stocks had already rebounded sharply on Wednesday, and Tokyo’s boom suggests the global market might be gearing up for a short-term rally.
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