Vietnam and India React to US Tariffs; Chinese Tech Stocks See Major Gains; Singapore Exchange Faces Setback
In today’s Market Focus Daily update, the global markets saw significant developments. President Donald Trump’s announcement on reciprocal tariffs has created ripples worldwide, with Vietnam and India taking steps to offer concessions to avoid such tariffs. Meanwhile, the surge in Chinese technology stocks, driven by the growing hype around artificial intelligence, has pushed them to their highest levels in nearly three years.
Back in Singapore, the Monetary Authority of Singapore (MAS) has proposed tax incentives aimed at boosting the country’s equities market. However, despite the optimism surrounding the proposal, shares of the Singapore Exchange (SGX) dropped by 6%, indicating some investor caution.
The US administration’s move to implement reciprocal tariffs globally is raising concerns, but the economic response from countries like Vietnam and India suggests a readiness to negotiate and avoid a trade escalation. The tariffs are seen as a double-edged sword, providing breathing room for local industries while potentially straining relations with key trade partners.
Meanwhile, the Asian stock market saw a positive trend, with Hong Kong recording a gain of more than 1%. Other regional markets such as Sydney, Seoul, Wellington, and Manila followed suit, buoyed by the sense that US tariffs are offering some temporary relief to the broader economy.
The excitement around Chinese tech stocks is another highlight, with AI developments continuing to fuel investor optimism. As these stocks climb to their highest point in almost three years, analysts predict that AI’s potential will continue to drive growth in the sector.
Back in Singapore, despite the MAS’s forward-looking proposal, the SGX witnessed a significant dip, with shares falling by 6%. This unexpected turn has led many to speculate about the challenges faced by the exchange in attracting sustained investment amidst global uncertainties.
