Asian Markets Rally Amid Trade Tensions, Bitcoin Holds Near Record High

Investors show resilience despite fresh US tariffs and rising global trade friction

Asian stock markets mostly closed higher on Thursday, defying a renewed wave of US-imposed tariffs that threatened to disrupt global trade flows. Investor optimism remained intact as hopes grew for potential diplomatic resolutions to soften the impact of President Donald Trump’s aggressive trade stance.

Major regional indices including those in Hong Kong, Shanghai, Sydney, Seoul, and Singapore posted gains, mirroring the upbeat momentum on Wall Street. The tech-heavy Nasdaq led the charge in the US, buoyed by a sharp rise in Nvidia shares, which briefly lifted the company’s valuation to $4 trillion—a new milestone for the semiconductor giant.

Despite the generally bullish mood, Japan’s Nikkei 225 fell 0.5%, weighed down by a newly announced 25% US tariff and stalled trade negotiations with Washington.

Global Trade Frictions Intensify

Trump’s administration escalated trade tensions by unveiling a new series of tariffs, including a steep 50% levy on Brazilian goods. The move triggered a sharp market reaction in Brazil, prompting a forceful response from President Luiz Inácio Lula da Silva, who condemned the action and vowed retaliatory measures.

In addition, over 20 US trading partners—including Japan and South Korea—reportedly received formal tariff notices as part of Trump’s “Liberation Day” trade agenda. Originally set to take effect on July 9, the deadline has now been extended to August 1. Proposed measures under discussion include a 50% tariff on copper imports and a possible 200% tariff on pharmaceutical goods.

Despite these headwinds, Bitcoin maintained its strength near an all-time high of $112,000, supported by rising institutional interest and broader mainstream acceptance.

While markets remain volatile, investors appear to be betting that ongoing diplomacy and central bank support will contain the fallout from escalating trade disputes. However, with more tariff announcements potentially on the horizon, traders will be watching closely for any shifts in tone from Washington and other global leaders.