US stocks stage a dramatic reversal on a tariff pause announcement. Hong Kong market climbs, and Gold continues its rally. Our technical analysis covers key levels and market reactions.
No clear signs of risk-on yet as Gold and JPY continued to hold firm
It was another dramatic day in the financial markets, as US President Trump announced a 90-day pause on the higher reciprocal tariff rates for countries that do not retaliate.
The U.S. stock market soared on Wednesday, 9 April, posting significant gains across major indices. Mega-cap-focused benchmarks, the S&P 500 and Nasdaq 100, surged by 9.5% and 12%, respectively. The Dow Jones Industrial Average and the small-cap Russell 2000 also rallied, climbing 7.9% and 8.7%, respectively, as investor optimism fuelled a broad-based market upswing.
Tensions between the U.S. and China remained high, as the White House imposed additional tariffs on Chinese goods, raising the tariff rate to 125% in response to Beijing's retaliatory measures.
The Hong Kong stock market brushed off concerns over the increased U.S. tariffs on Chinese goods, with the Hang Seng Index climbing 2.5% in intraday trading at this time of writing. Investors appeared optimistic as they looked ahead to potential fiscal stimulus measures from China’s top policymakers in response to the heightened trade tensions.
Interestingly, safe haven demand has not waned with Gold (XAU/USD) extending its gains in today’s Asian session with an intraday rally of 1.4% and surged above its 20-day moving average, acting as a key intermediate support at US$3,040.
Meanwhile, the Japanese yen has managed to reverse partial losses against the US dollar inflicted during yesterday’s US session with an intraday gain of 0.8% as the USD/JPY staged a bearish reaction below its 20-day moving average, acting as a resistance at around 148.15.
