Market Turbulence Amid US-China Trade War Truce

Asian markets showed mixed reactions as the initial euphoria surrounding the 90-day trade war truce between the United States and China faded. Analysts cautioned that President Donald Trump's policies might change swiftly. The US plans to cut tariffs on Chinese goods to 30%, down from 145%, while China will lower tariffs on US goods from 125% to 10%.

This agreement emerged following weekend negotiations in Geneva, where the US described the progress as significant. Stephen Innes of SPI Asset Management remarked on the stage-managed nature of the diplomacy, noting that the optics were favorable and the implications could be real. Nonetheless, significant challenges remain in the ongoing US-China negotiations.

Despite diplomatic achievements, tensions linger, with Beijing expressing frustration over the trade disputes. Asian indices responded variedly, with the Nikkei rising while technology stocks dragged Hong Kong's Hang Seng lower. Significant economic indicators, including the S&P 500 and Nasdaq, experienced gains, propelled by hopes for easing trade tensions.

(With inputs from agencies.)