Global stock indices experience a sharp decline amid escalating trade tensions. Yen and Gold rally, and the US dollar weakens. TSMC earnings become a key market focus. Our technical analysis covers major market reactions.
Minor relief rebound in Asian stock indices
Global stock indices cratered yesterday, 16 April, led by technology and semiconductor stocks. Uncertainties over US tariffs and tic-for-tat trade retaliatory measures cast doubts on the technology sector's prior high earnings growth expectations.
On Wednesday, 16 April, US technology heavyweight Nasdaq 100 plummeted by 3%, and in total, considering its performance in the past four sessions, it had almost wiped-out half of the 12% daily gain seen on last Wednesday, 10 April when US President Trump announced a 90-day pause on the higher US reciprocal tariffs rates on all countries except China.
Europe-based ASML, the world’s biggest semiconductor chip-making equipment supplier, warned that US tariffs were increasing uncertainty around its earnings outlook for 2025 and 2026, which added “salt” to yesterday’s risk-off sentiment.
Also read: What are stock market indices? How to invest in them?
The US dollar continued to weaken, and safe-haven currencies, the Swiss franc and Japanese yen, outperformed among the major currencies with daily gains of 1.2% and 1% against the US dollar yesterday, 16 April. In addition, Gold (XAU/USD) stood out positively as trade tensions raged on, and it soared by 3.5% to print a fresh all-time closing high of $3,343 yesterday.
In today’s Asian opening session, it extended its gains by 0.2% to print a current intraday high of $3,357. Japan has concluded its first day of trade negotiations with US officials, where US President Trump made a surprise move to join in, and commented that there was “big progress” via his social media account.
Trump’s positive comments on the ongoing US-Japan trade talks have offered a possible minor relief to risk assets, as major Asian benchmark stock indices started today’s session with positive gains. Japan’s Nikkei 225 rallied by 0.9%, coupled with the Japanese yen losing 0.5% against the US dollar. Hong Kong’s Hang Seng Index ticked higher by 1.2% at this time of writing.
Risk sentiment in the latter half of the Asian session and early European hours will likely hinge on Q1 earnings results and the 2 PM Singapore time conference call from TSMC, the world’s largest contract semiconductor manufacturer.
The latest intraday technical analysis on US Wall Street 30, US Nas 100, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil can be found in our YouTube video above.
