Global markets responded positively on Tuesday, February 4, 2025, as U.S. President Donald Trump announced a one-month delay in imposing tariffs on Mexico and Canada, alleviating trade tensions and boosting investor confidence. The move triggered a rally across Asia-Pacific markets, with Japan’s Nikkei 225 climbing 1.64% to close at 39,140.41 points, while South Korea’s Kospi surged 1.63% to 2,493.99 points. Hong Kong’s Hang Seng Index soared 2.10%, reflecting strong investor sentiment, and Australia’s S&P/ASX 200 posted a modest gain of 0.13%.
The tariff suspension followed high-level discussions between President Trump, Mexican President Claudia Sheinbaum, and Canadian Prime Minister Justin Trudeau, centered on strengthening border security and intensifying efforts against drug trafficking. The move also had a positive ripple effect on currency markets, with the Indian rupee appreciating as its one-month non-deliverable forward rate improved to 86.96-86.98 per U.S. dollar.
Despite the short-term market relief, analysts remain cautious, warning that Trump’s trade policies will continue to shape global economic trends. Investors are now closely watching upcoming negotiations for further developments that could impact international trade and financial markets.
